Friday, February 6, 2009
Joseph Stiglitz went a step further, advising the UK government not to prop up a corrupt edifice
Ex-World Bank economist and Nobel Prize winner Joseph Stiglitz went a step further, advising the UK government not to prop up a corrupt edifice, but to let the entire banking system collapse in order to build up a well-regulated system from scratch under temporary state control. “The UK has been hit hard because the banks took on enormously large liabilities in foreign currencies. Should the British taxpayers have to lower their standard of living for 20 years to pay off mistakes that benefited a small elite?” he asked a Daily Telegraph reporter rhetorically the day after the funeral wake was over. Of course, pulling the plug on the British banks could mean the collapse of the entire international banking system, but this may happen anyway.