Skip to comments.Economist Joseph Stiglitz: Put Corporate Criminals in Jail
Posted on 10/25/2010 4:15:14 PM PDT by Chunga85
An institutionalized system of skewed incentives allowed Wall Street bankers and other corporate executives to gamble with America's wealth and then get away largely scot-free after the house of cards came tumbling down, plunging the U.S. into the worst economic crisis in decades and destroying trillions of dollars of wealth worldwide.
That's the analysis of Joseph Stiglitz, an internationally renowned economist and winner of the 2001 Nobel Prize in economics. (His latest book, Freefall: America, Free Markets, and the Sinking of the World Economy, is just out in paperback.)
During a wide-ranging interview with DailyFinance at AOL headquarters in New York City this week, Stiglitz, who served as chief economist of the World Bank from 1997-2000 and is currently University Professor at Columbia University, explained how the availability of cheap money (thanks in large measure to former Fed Chairman Alan Greenspan), combined with outright mortgage fraud and deceptive and predatory lending practices put millions of people into homes they couldn't afford and caused real estate prices to skyrocket. That created a bubble that would inevitably pop.
See full article from DailyFinance: http://srph.it/aAPcdL
(Excerpt) Read more at dailyfinance.com ...
Amen! Been saying this for years. JAIL, not fines, for corporate malfeasance.
No justice at all unless Barney Frank and Christopher Dodd share their cells.
On second thought, let Barney Frank share a cell with a girl.
The guy who is the Big Boss of most of these corporations is Barack Obama. A little jail time might chasten him.
I would like to know why we aren’t seeing perp walks?
Did you know that in the aftermath of the Savings and Loan (Thrifts) scandal there were more than a thousand felony convictions of financial elites? The cost of the wrongdoing associated with the rip-off and closure of nearly 800 Thrifts cost taxpayers more than $160 billion. The current sub-prime/mortgage-backed security scandal is 40 times bigger according to Economics professor William Black. That means the size of the crime is $6.4 trillion by my calculation. Can you guess how many indictments there have been on financial elites who created this enormous mess? Zero, none, nada, zip. Yes, not one single prosecution or conviction has been started of achieved.
Let me be the first to say it, we need to put some
political criminals behind bars.
If Stiglitz were serious, he would be saying to put the politicians, Fed officials, and other assorted bureaucrats in jail who were involved in this. That would include Almost all Ds, a lot of Rs, in Congress, a large number of CLinton administration figures, some people from the Bush administration, and hordes of others in Fannie Mae, the Fed, Freddy Mac, and other agencies and departments. Wall Street and the banks were mostly doing what they were being told to do (or else), and most of them were happy to do it because they could make a buck. The idea that they were the main culprits is idiotic.
I would like to know why we arent seeing perp walks?
The Liberal Free Trade Globalists in both parties will not prosecute these crooks...most of the politicians take campaign contributions from these guys...and support what these crooks do.
Interesting though that it is a former chief of the World Bank calling out the crooks....the World Bank is part of this collapse of the world’s economy
Now matter how popular any comments this fraud makes today, when he started writing (in 2009) that the “solution” to the financial mess was to keep real estate prices from falling (keep them in the inflated-bubble levels they had gained) and that to that end the U.S. needed to “stimulate” the housing market and subsidize those who paid too much (those “under water”) at the end of the bubble - I knew, as an economist, he’s a fraud.
No matter what the Banks did, Greenspan and Bernanke provided the fuel, without which the primary “incentive” - excess money flowing around and too cheap, skewing the cost of risk to historic lows - would not have existed in the marketplace, in the first place.
As much as its nice to blame the banks, they are not the only ones to blame, nor the most important ones, because right now the central economic terrorist - the Fed - is creating conditions that will set up new future scapegoats for new economic crisis (which they are likely to again escape any blame for).
This should include about half of congress starting with Frank and Dodd..
§ 4. Misprision of felonyWhoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both.
They need to send Hugo in after them.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.