BNN had an exclusive interview with Joseph Stigliz, Nobel prize winner.
He has a very good point, one I have been wondering too If we spent the money in infrastructure and education, the long term debt will be reduced. You will get further growth down the line, generating higher tax revenues. Why waste money on auto makers and bankrupt financials when you an build lasting and economy enhancing projects?
- Stiglitz is advising the Greek government
- Economy is very weak, cannot focus on deficit now.
- US Financial structure encourages risk taking and contributes to the problems. It is better to be a speculator than to work for a living.
- Big banks are implicitly subsidized.
- We also have problems with too big to fail hedge funds.
Stiglitz is the author of author, "Freefall: America, Free Markets, and the Sinking of the World Economy."