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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The book which is “rife with This balance will differ from time to time and place to place. Feb 15, Kacey rated it it was amazing. This is followed with a more general appraisal of Americas position with rising public debt, it’s relationship with China, and a still dysfunctional financial sector.
Jul 09, Lobstergirl rated it liked it Recommended to Lobstergirl by: We have not changed our political system, so we should perhaps not be surprised by any of this. His prescience lends credibility to his trenchant analysis of the causes of the fiscal meltdown.
He also says it would have been better to have more oversight on how the banks used money given to them jiseph the government. The financial sector has paid the pipers in both parties and has called the tune. I would have loved forcing all investment bankers to have their salaries reduced to minimum wage until all government money was paid back. Creefall that time, there has freefzll little progress indeed in making the reforms vreefall the author calls for.
In a decade in which per capital GDP in the US increased by ten percent while average wages decreased by 4 percent we have learnt that some rising tides only lift the biggest of boats. He suggests that it would have been better to target small banks instead of big banks and home owners over bankers.
Can we citizens expect to have regulations passed breaking up the too-big-to-fail, too-big to resolve, or too-big-to-manage banks if the banks continue to be the too-big-to-ignore campaign contributors?
Th For an economist, Joseph Stiglitz writes very well in order for the average person to understand the complexity of the American economy. Well, Joseph Stiglitz knows what he’s talking about and he’s blames the bankers.
Freefall: America, Free Markets, and the Sinking of the World Economy
Stiglitz deconstructs the complexity surrounding the crisis into an easily absorbable and understandable form. What is most discouraging is that there was no real accountability – those causing the problem actually got rewarded out of the public purse in the bailout.
Our financial markets have failed us, but we can not function without them. View all 19 comments. But in other areas, as this book goes to press, there is remarkably little progress—the too-big-to-fail banks will be allowed to continue much as before, the over-the-counter derivatives that cost taxpayers so much will continued almost abated, and finance executives will continue to receive outsized bonuses.
He also ridicules correctly, in my opinion the notion that economic conclusions can be drawn while assigning no weight whatever to the environmental consequences of certain choices, such as the continued reliance upon fossil fuels. Stiglitz’s certainly did a fantastic job with this book. There will no doubt be many more, and those to come, as this one, have the benefit of a wider time line or perspective looking both back to past actions, and judging present policies that have been put forward.
Since the late s the free market ideas of Milton Friedman and the University of Chicago have been in ascendancy, gradually replacing the Keynesian ideas of FDR in the Great Depression. Inequality equally leads to monopoly, preferential tax treatment for the wealthy which in turns reinforces inequality and even distorts the very markets the disciples of laissez-faire have so long touted as perfect. He also gives a fascinating explanation of the work he did in winning the Nobel Prize around how information asymmetries even seemingly minor ones destroy the possibility of market efficiency.
Jan 27, Mat Davies rated it really liked it. Advanced embedding details, examples, and help! But the chances that democratic processes will prevail will depend upon reforms in campaign contributions and electoral processes.
Joseph E. Stiglitz – Freefall America: Free Markets, And The Sinking Of The World Economy
Alas, accordingly a cocktail of flawed incentives systemic risk and unforeseen externalities bludgeoned the economic system, and the Frsefall consensus of deregulation it was built upon. It addresses economic matters and a lot more; the nature of inequities within American society and how these inequities have pervasive consequences beyond what we can see and by so doing compromising the long term prosperity of all.
The blame lies on the bank owners, loan agencies, investment firms, Wall Street firms who misdeeds overlaps each other, causing a bubble in which billions of dollars are bet on how long will that bubble last before it burst. The author provided the following comparison of CEOs in various countries: A perfect realignment of market forces at the end of the recession and readjustment in the United States would be that the world’s productive capacity would be used to more certainly meet the world’s consumption needs.
The economy has been built to extract as many resources as possible to enrich the few at the top at the behest of the rest of society and the world. This text was not only more informative but also more accessible than other books I have read on the Recession. His explanation is extremely thorough, and I finished this book feeling that I finally had a grasp on what is happening in our country.
This is what Stiglitz makes clear in this book in a convincing way. Also to blame are the policy makers in D. Though Stiglitz is a Keynesian economist, his participation in Clinton era policymaking took place at a time when financial deregulation reached its peak, inwith the passage of the Financial Services Modernization Act, and the repeal of the Depression era Glass-Steagel Act, which separated the functions of commercial and investment banks.
I was amazed by how much Stiglitz had to say in this book, perhaps a testament to his passion of the subject and his desire to see the U. You can help by adding to it.
When markets fail, government will come in to pick up the pieces. Our pipes got clogged. He’s not quite as peevish as Chomsky or restrained as Krugman. However, hi Stiglitz’s book is a fantastic and page turning read about the financial crisis.
Maybe it is time for a global currency? The Nordic countries are exemplified as a group of countries with a relatively high income tax brackets but, in direct contradiction of American mainstream economists, have a consistently high quality of life.
In contrast to managing risk an allocating capital, the structure and policies of global capitalism had encouraged the creation of risk and misallocation of capital.
Nevertheless, the well articulated examples of deception and disingenuous forms of capital exchange and exploitation is worthy weaponry for those of a democratic socialist persuasion.
Freefall: America, Free Markets, and the Sinking of the World Economy – Wikipedia
In America, too many of the rules were set by and for those from finance, and the referees were one-sided. America as a nation faces huge challenges—in health care, energy, the environment, education, and manufacturing—and Stiglitz penetratingly addresses each in light of the newly emerging global economic order. Frankly, I like this kind of writing, because you feel smarter for having read stivlitz.
The Hidden History of the Financial Crisis ; the latter, written by two business journalists, wasn’t trying to be an economic treatise.
Reading books of this sort, that is, about economic crises and their causes, has a tendency to evoke a sense of frustrative disdain.