Stiglitz Says Banking Problems Are Now Bigger Than Pre-Lehman

Wolf359

While the Federal Reserve and politicians continue to whistle a happy tune, the reality is the economy is crap.

Sept. 13 (Bloomberg) -- Joseph Stiglitz, the Nobel Prize- winning economist, said the U.S. has failed to fix the underlying problems of its banking system after the credit crunch and the collapse of Lehman Brothers Holdings Inc.

“In the U.S. and many other countries, the too-big-to-fail banks have become even bigger,” Stiglitz said in an interview today in Paris. “The problems are worse than they were in 2007 before the crisis.”

An outrage

cladking

<< <i>Stiglitz said the U.S. government is wary of challenging the financial industry because it is politically difficult, and that he hopes the Group of 20 leaders will cajole the U.S. into tougher action. >>



And this is the problem that has been developing for decades
because of the government raising huge barriers to start new
businesses and their virtually nonexisting regulation of exist-
ing business. These things are huge and have already bought
as much government as they need to maintain the system that
allows waste and inefficiency to flourish for the benefit of the
few. They have more and more power every year because the
source of power has also been evolving in the information age.

Even Teddy Roosevelt would have to whisper because no one
has a big enough stick to make these guys toe a line.

Bear

Where the heck is another Teddy Roosevelt,

when we really, really need him. The super big

banking and investment trusts must be broken

up as they did with Standard Oil. Instead,

what we seem to be doing.. Is make these giants

even bigger. We must begin to buy strategic

assets just as Chine is doing for materials not found

in the USA. As Nations close of strategic raw materials

for export, then we must do the same to those Nations.

Economic warfare will occur, before actual War.


In another major war, we must insure that all facets of

war production are or can be made within the USA. Can you

imagine having electronic gear, uniforms and tank turrets made

in China. When any Nation loses the major portion of its industrial

capacity, it loses a portion of its National Security in time of war.

roadrunner

The problem has morphed well beyond TR's ability to repair...or anyone else for that matter.

Consider that:

JPM = GS = Citi = BoA = AIG = GM = Fannie/Freddie = Treasury = FED

It's all one big family now. What happens in Washington, stays in Washington. J.P. Morgan, the Rockefellers and others may have seen some of their trusts broken up long ago but it appears they finally get the last laugh. They won. That is...assuming they can keep it from blowing up in their faces and/or have enough hard assets socked away to buy it all back on the cheap.

roadrunner