Joseph Stiglitz thinks so:
Sept. 14 (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 yesterday in Paris. “The problems are worse than they were in 2007 before the crisis.”
Stiglitz’s views echo those of former Federal Reserve Chairman Paul Volcker, who has advised President Barack Obama’s administration to curtail the size of banks, and Bank of Israel Governor Stanley Fischer, who suggested last month that governments may want to discourage financial institutions from growing “excessively.”
A year after the demise of Lehman forced the Treasury Department to spend billions to shore up the financial system, Bank of America Corp.’s assets have grown and Citigroup Inc. remains intact.
Of course, “too big to fail” wasn’t quite an honest way of looking at it – more accurate would have been “too big and already failed, so lets chuck some taxpayer money down the rat hole”. And now the rat holes are bigger, and still have huge amounts of toxic assets on the books…and more and more of their assets are turning toxic all the time. And Uncle Sam has already spent more than he’s got, and the Fed printed trillions to bail them out. Now, what?
Get ready for massive celebrations in liberal land a Q3 shows economic growth. As far as Obama and the MSM will play it, we might as well be in the biggest boom in human history, all thanks to Spendulus. And they’ll slap each other on the back and their poll numbers will creep up a bit…and then the bottom will drop out of the tub. I figure this for March. But it might come sooner.
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