Share on Google Plus Share on Twitter Share on Facebook Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend 10 (10 Shares)  

Printer Friendly Page Save As Favorite View Favorites (# of views)   15 comments
OpEdNews Op Eds

Economic Insecurity Update: Stiglitz & Soros Speak

By       Message richard power     Permalink
      (Page 1 of 2 pages)
Related Topic(s): ; ; ; ; ; ; ; ; ; , Add Tags Add to My Group(s)

View Ratings | Rate It

opednews.com Headlined to H3 11/14/08

Author 14054

Economic Insecurity Update: Stiglitz & Soros Speak Truth, While Tone-Deaf Nero Fiddles Out-of-Tune Encore for G-20

by Richard Power


According to the Financial Times, this 21st Century Nero's "hopes for success at the international financial summit this weekend are likely to be limited to preventing tougher regulations on US-style capitalism."

Well, while this tone-deaf, 21st Century Nero fiddles his out-of-tune encore to the G-20, against a backdrop of economic and environmental disaster; those, like
Joseph Stiglitz and George Soros, who understand the music of life, are speaking out.

Nobel prize winning economist, Joseph Stiglitz, writing in Der Spiegel:



To too great extent, there has been a race to the bottom in accordance with the myth that deregulation breeds innovation. Instead, the innovation was greatest when it came to getting around the regulations designed to ensure good information and a safe and sound financial system. ...

Financial market regulators, at both the national and international level, have failed. To a large extent, Basel II, the new framework of bank regulation, was based on self-regulation, itself an oxymoron. Banks have shown that they are not up to the task of managing their own risk. But even if they had, there is the more fundamental problem of systemic risk.

The current global financial architecture hasn't been working well. But more than that, it is unfair, especially to the developing countries. They will be among the innocent victims of this global crisis that wears the “made in America” label. ... We need a new financial facility to help the developing countries, one whose governance reflects the realities of today. Going forward, this new facility might lead to deeper reforms at the IMF. Such a facility needs to be created quickly, but if experts from the finance ministries and central banks are loaned out to this new institution, it could be up and running in short order.
There are further reforms that need to be undertaken. ...
Joseph Stiglitz, Der Spiegel, 11-12-08

George Soros, "financial speculator, stock investor, philanthropist, and political activist," testifying before the US House of Representatives Oversight and Government Reform Committee:

* Said "a deep recession is now inevitable and the possibility of a depression cannot be ruled out."

* Said hedge funds were an integral part of the financial market bubble which now has burst.

* Said hedge funds will be "decimated" by the current financial crisis and forced to shrink their portfolios by 50-75 percent.

* Said Fed, Treasury Department and the SEC must accept responsibility to prevent market bubbles from growing too big in future.
Said impossible to prevent market bubbles from forming, but they can be kept within "tolerable bounds."

* Said financial engineering should be regulated and new products approved by regulators, and that such regulation should be a high priority of the new Obama administration.

Next Page  1  |  2

 

- Advertisement -

View Ratings | Rate It

http://words-of-power.blogspot.com
Richard Power writes and speaks on the 21st Century security and sustainability crisis. He is the author of five books. He has also delivered executive intelligence briefings and led professional training in over thirty countries. You can read his (more...)
 

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon



Go To Commenting
/* The Petition Site */
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles

Tell a Friend: Tell A Friend


Copyright © 2002-2017, OpEdNews

Powered by Populum