Stiglitz Says Banking Problems Are Now Bigger Than Pre-Lehman


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Stiglitz has part of it right, but his misguided concern about ‘who is going to finance the US government’ is disquieting at best.

Stiglitz Says Bank Problems Bigger Than Pre-Lehman

The Federal Reserve faces a “quandary” in ending its
monetary stimulus programs because doing so may drive up the
cost of borrowing for the U.S. government, he said.

“The question then is who is going to finance the U.S.
government,” Stiglitz said.


Stiglitz gave the interview before presenting a report to
French President Nicolas Sarkozy that urged world leaders to
drop an obsession for focusing on gross domestic product in
favor of broader measures of prosperity.


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