No one can say they weren’t warned. A decade ago, newly sacked from his job as chief economist at the World Bank, Joseph Stiglitz laid bare. An incisive look at the global economic crisis, our flawed response, and the implications for the world’s future Great Recession. In this forthright and incisive book, Nobel Laureate Joseph E. Stiglitz explains how America exported bad economics, bad policies, and bad behavior to the rest .
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Makes several good points: Too-big-to-fail is still with us; the financial sector is still awash, drowning, in moral hazard. But his underlying analysis is correct. Stiglitz has waited a long time for his views to be vindicated and freefalll not going to spurn the opportunity to settle some scores.
Here, it seems accountability is unAmerican from the way the corporate pigs snuffle in the welfare trough meant for poor people in dire need of decent housings, food, and health benefits. Never mind if the overcharged us for the installation; never mind that they overcharged us for the repair. We have seen the failures of the old.
Freefall: America, Free Markets, and the Sinking of the World Economy – Wikipedia
Stiglitz is my guy, I think. I think he gets a mite carried away with some accusations but think it defensible on the basis that his side of the debate is the one 1 not getting heard enough and 2 more worth hearing. Dec 01, Conor rated it really liked it Shelves: Perhaps the economy will have returned to full employment—though that is unlikely.
A Keynesian view of the economy and the Great Recession. This is a lucid book, it is a book that challenges the existing assumptions particularly neoliberal economic assumptions and presents a way forward for a more stable, ecologically sustainable and more just society. All over the course of history, Revolutions occurred because of imbalances in the wealth distribution within societies. The rules are the laws that govern the market economy. N o one can say they weren’t warned.
Stiglitz delineates why the prioritisation of inflation as a concern is unjustified, and how moderate inflation is accommodative of a healthy economy. The New Statesman rather focused on shortcomings of Freefall: Why we have to change capitalism”.
The juxtaposition was sour; on one hand, millions of naive homeowners or until after the crisis were left saddled with insurmountable mortgage repayments; and on the other, the alchemists behind the crisis enjoyed huge bonuses, courtesy of government largesse. Unfortunately, we’ve been sold this argument as the only way for our economy to work.
This balance will differ from time to time and place to place. Overview Inside the Book. Some of them were Clinton officials, and some of them are now advising Obama. The bankers asked for deregulation the same way that the frogs asked for a king in the Aesop fable, only Jove decided to give out a multi-trillion dollar bailout to the frogs after the stork came down.
Freefall: America, Free Markets, and the Sinking of the World Economy
Governments will conduct monetary policy and will provide for national defense, police and fire protection, and other essential public services. He concludes the book by asking: Unregulated capital markets do not automatically lead to the best allocation of resources in the economy, support full employment, or fair distribution of wages does anyone still really think investment bank CEOs deserve those salaries and bonuses?
Our financial markets have failed us, but we can not function without them. Excellent discussion of several complicated subjects. Stiglitz’s book is a fantastic and page turning read about the financial crisis. Feb 04, Michael rated it it was ok. Mar 30, Stuart rated it it was amazing Shelves: Meanwhile, its subtitle reveals Stiglitz’s conviction that free markets are at the bottom of the crisis, as he makes deregulation responsible for the rise of the shadow banking systemover- leveraged banks and subprime mortgages.
I came away from the book with the appreciation that ideas do, indeed, have consequences. There is more, though, to Freefall than sheer gloating — however justified.
He was correct in some of his predictions, however, particularly that politicians would be too weak and beholden to corporate interests to enact real reforms or hold high-level executives accountable. Senators themselves should recognize this fact and push through those rules [procedural rules], including eliminating or at least limiting the filibuster. But all in all, I really like reading Joseph Stiglitz, if I ever go to b-school or study economics, I’d love to go to Columbia to take one of his classes.
Today unemployment is masked in Britain by zero contracts and temporary and short term work.
The big banks used their status as “too big to fail” to extract unconditional bailout packages which mainly went to sustain “retention” bonuses hard to call them “performance-based” and a return to business as usual.
Jan 27, Mat Davies rated it really liked it.
Freefall: America, Free Markets, and the Sinking of the World Economy by Joseph E. Stiglitz
In “Freefall” he looks at the current economic debacle, how it happened, its origins, the inadequate response, as well as speculating on what might get us out of this jodeph mess. The Hidden History of the Financial Crisis ; the latter, written by two business journalists, wasn’t trying to be an economic treatis It’s probably unfair to call Stiglitz a subpar storyteller, since he’s not really trying to tell a story here.
I would have loved forcing all investment bankers to have their salaries reduced to minimum wage until all government money was paid back. His book accomplishes two purposes: I lie atiglitz fact, the gargantuan bailouts did have one effect – they were absorbed into the coffers of those responsible for the crisis; record bonuses were openly awarded.