Joseph Stiglitz: We're Probably Going To Have To Bail Out The Banks Again

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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