Volcker, Warren and Stiglitz Slam Government Approach to Crisis

Former fed chair Paul Volcker, TARP bailout overseer Elizabeth Warren and Nobel economist Joseph Stiglitz all slammed the government’s approach to the economic crisis today:

  • Volcker accuses Obama’s National Economic Council Director – and consummate financial insider – Lawrence Summers for slowing down the effort to organize a panel of outside advisers on the crisis
  • Warren has discovered that Paulson overpaid by $78 billion dollars for toxic assets purchased from financial institutions
  • And Stiglitz writes:

    “Perhaps the entire strategy is flawed? Perhaps what is needed is a fundamental rethinking. The Paulson-Bernanke-Geithner strategy was … based on a failure to grasp some of the fundamental changes in our financial sector since the Great Depression, and even in the last two decades.

Will Bernanke, Summers and the other people who got us into this mess keep on steering the ship over the waterfall? Or will the powers-that-be start to listen to those telling where we are, and start steering away before it is too late?

Thursday, February 5, 2009

Source: George Washington’s Blog

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