"To be frank, the administration has a credibility and trust gap as big as that of Wall Street. If the crisis was as severe as they claim, why didn't they propose a more credible plan? With lack of oversight and transparency the cause of the current problem, how could they make a proposal so short in both? If a quick consensus is required, why not include provisions to stop the source of bleeding, to aid the millions of Americans that are losing their homes? Why not spend as much on them as on Wall Street?"
That is Joseph Stiglitz
- you know the fellow who won the Nobel Prize for his work on how incomplete or asymmetrical information can flummox markets - suggesting that lack of transparency has gotten us into a mess and that compounding the problem will only exacerbate matters. You can find the rest of the essay here
in The Nation
. For all the folks out there who insist that we can work our way out of this by simply relying on market corrections Stiglitz
offers scant solace; he insists rightly identifies "the underlying causes of the problem: the spirit of excessive deregulation."
Labels: political economy, Stiglitz