Let banks fail, says Nobel economist Joseph Stiglitz

carolt

The Government should allow every distressed bank to go bankrupt and set up a fresh banking system under temporary state control rather than cripple the country by propping up a corrupt edifice, according to Joseph Stiglitz, the Nobel Prize-winning economist.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/4424418/Let-banks-fail-says-Nobel-economist-Joseph-Stiglitz.html


Sounds good to me. Anyone else?

Wookster

I would be for this if:

- The focus of the government was to allow repayment of debt and the bolstering of productivity rather than to try and force the banks to "just keep lending" as an answer to our woes
- I had any faith in this government's ability to organise anything more complicated than a night out at the movies.

ray123

I think that there are so many different options available, each of which have a number of positive and negative effects.
I agree that it will cause more turmoil in the short term but will be better for the economy in the mid to long term.
Is that not common sense - surely the government should be thinking about a long term solution rather than another short term fix!

purch

I had any faith in this government's ability to organise anything more complicated than a night out at the movies

You have waaaaaay too much faith !!!!

Do you really think Darling could remember everyone's order for Popcorn and a Soda ???

thebaldwindowfitter

easy way to sort the banks out limit employee wages to no more than 100k a year rather than these big wages theyve been used to and make them responsible ie if the bank fails then the directors should be held more accountable for there actions like other businesses are not simply paid off.

Cleaver

I have a Joseph Stiglitz book on our shelves at home, I think it's called 'The Roaring Nineties'. I've never got round to reading it, but it does the neat trick of making me look like an intellectual when people come round. I have a Noam Chomsky book that I've also never read that serves a similar purpose.

I suspect my ploy may work if it wasn't for the random copies of Viz I leave around the flat.

StevieJ

Cleaver wrote: »

I have a Joseph Stiglitz book on our shelves at home, I think it's called 'The Roaring Nineties'. I've never got round to reading it, but it does the neat trick of making me look like an intellectual when people come round. I have a Noam Chomsky book that I've also never read that serves a similar purpose.

I suspect my ploy may work if it wasn't for the random copies of Viz I leave around the flat.

I should imagine your copies of Viz carry the street cred though, Sharon, Tracy and Buster Gonad oh and Mr Logic (reminds me of !!!!!! or was that Suicidal Syd, no thats Dopester).
BTW are you mewbie?

SGE1

carolt wrote: »

The Government should allow every distressed bank to go bankrupt and set up a fresh banking system under temporary state control rather than cripple the country by propping up a corrupt edifice, according to Joseph Stiglitz, the Nobel Prize-winning economist.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/4424418/Let-banks-fail-says-Nobel-economist-Joseph-Stiglitz.html


Sounds good to me. Anyone else?

Would only work if it was rolled out globally though. If it were just in the UK, all foreign investors would run a mile. Edit: more like several hundred.

Cleaver

StevieJ wrote: »

I should imagine your copies of Viz carry the street cred though, Sharon, Tracy and Buster Gonad oh and Mr Logic (reminds me of !!!!!! or was that Suicidal Syd, no thats Dopester).
BTW are you mewbie?

I know why you could come to that conclusion, but you're just getting us confused because we use the same font.

bubblesmoney

loads on mse have been saying it for a while whatever stiglitz said now:p

StevieJ

Yes, before they do I hope they remove all those guarantees, I wouldn't wish to be refunding all the balances lost through my taxation :eek: