Joseph Stiglitz spoke with Kerry O’Brien of the Australian Broadcasting Company about the state of the American economy and the threat of another “too big to fail” event.
- 1:00 The U.S. growth forecast is weak and is going to get weaker.
- 1:35 Europe is increasing the likelihood of a U.S. double dip due to its unsettling of the financial markets and a weakening export market for the U.S.
- 2:30 The strength of the dollar and weakness of the euro is disadvantageous to U.S. growth.
- 3:00 Obama did not listen when we spoke to him about selling a second stimulus, and in selling the first stimulus.
- 5:00 On almost every principal set up in the financial reform bill, the banks stepped in, changed the language, and made it weaker. Too big to fail has not been solved.
- 6:15 Obama has oversold what has been achieved. Government will continue to bailout shareholders and debt holders. This is all likely to happen again.
- 7:50 The global financial system came very close to a collapse, banks did not know their own balance sheets, engaged in tricks to deceive authorities, and could not trust any other firm.
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