Wednesday, July 6, 2011

Stiglitz Gone Wild

During a period when the Federal Reserve pumped huge amounts of money into the system, pushing interest rates far below where they would otherwise be, a period when quasi-government entities, Fannie Mae and Freddie Mac, encouraged home loan mortgage financing at astronomical home prices and the government bank deposit insurance entity, the FDIC, created trillions in moral hazard money because of its guarantees, economist Joseph Stiglitz has gone wild and claims there was no government intervention in the economy leading up to the crisis.

In a new paper out today at Project Syndicate,The Ideological Crisis of Western Capitalism, Stiglitz imitates a surfer in a rubber suit on a sand dune in the desert bitching about the rough surf. He declares:
Just a few years ago, a powerful ideology – the belief in free and unfettered markets – brought the world to the brink of ruin.
If Stiglitz truly believes that the primary dealers in the financial crisis,i.e., the Federal Reserve, Fannie, Freddie and the FDIC, are free markets organizations, then it appears I have a new client for my amazing San Francisco fog making machine.


  1. So if this man deems them to be free markets, then why are my taxes being spent to bail them out????

    No wonder our country is in the state that it is in.. no one takes accountability for their actions..


  2. "Stiglitz imitates a surfer in a rubber suit on a sand dune in the desert bitching about the rough surf."


  3. People like Stiglitz give elite academia a bad name. Would you want your child learning anything from this hack?

  4. This hack is also a Soros stooge as well?

  5. I love economics. The most brilliant people studying basically the same material their whole lives, while one understands a free market, while another brilliant economist things a government-granted monopoly to a central bank, and Government-sponsored enterprises are "unfettered" free market institutions. No one as smart as Stiglitz could honestly believe this. I imagine he's just another rent-seeking schmoozer who wants a seat at the most powerful and lucrative tables he can get.

  6. Canada has heavy regulations in their banking industry (Limits to leverage and strict mortgage applications) and largely avoided the subprime mess.