First Barry and then Joseph?
In a follow up to the post that I did on Saturday about how Barry Ritholtz says we missed the opportunity to fix the banking industry, now we’ve got an article in Bloomberg where Joseph Stiglitz essentially says:
- The big banks are bigger than they were before.
- The US government doesn’t have the “guts” to tackle the problems like the world needs us to.
- Unless we tackle the problems, we’re destined for a significant period of lower than normal growth.
Does two noted analysts commenting on it mean it’s fact? Nope, but I really wouldn’t want to argue too hard with these guys. They’ve got some pretty impressive credentials and track record…..
Tom Vanderwell
Stiglitz Says Banking Problems Are Now Bigger Than Pre-Lehman – Bloomberg.com
Stiglitz Says Banking Problems Are Now Bigger Than Pre-LehmanBy Mark Deen and David Tweed
Sept. 13 (Bloomberg) — Joseph Stiglitz, the Nobel Prize- winning economist, said the U.S. has failed to fix the underlying problems of its banking system after the credit crunch and the collapse of Lehman Brothers Holdings Inc.
“In the U.S. and many other countries, the too-big-to-fail banks have become even bigger,” Stiglitz said in an interview today in Paris. “The problems are worse than they were in 2007 before the crisis.”
