For example, it would be necessary to regulate the type incentive bonuses. Primes are expected to p

Stiglitz: Wall Street's decline was a free market economy is the same as that of the Berlin Wall, the fall of communism February 9, 2009 Posted by Editors in America, the economy, the translation of the stories. Tags: Joseph Stiglitz trackback
Gardell: Obama said that Wall Street's collapse is one of the biggest financial crisis since the Great Depression. John McCain says the economy homes for sale is still in danger, but basically he is strong. How are you?
Stiglitz: Obama is closer to the truth. Yes, the United States has talented people, great universities, and advanced technology sector. But the financial markets homes for sale are playing a very important role, 30 percent of businesses in recent years, the revenue earned from the financial markets.
But it was not the truth, and they were all taken into account improperly. The situation turned boomerang against them, and now must pay for the rest of the business sector, as the turnover rate has slowed down because of their credit homes for sale facilities homes for sale were hit. No economy can not function effectively if he does not have a working financial sector. homes for sale
Even if the financial problems deleted, then all levels of public debt in households where the big problem. If we look at inequality, which is the largest since the Great Depression, homes for sale it is a big problem. If we look at stagneeruvaid wages, then there is a big problem.
Over the last five years of economic growth accounted for a larger share of the real estate bubble, which finally burst. And the fruits of that increase was not distributed to a wider audience. Briefly: fundamentals were built of clay feet.
How should policies respond to the collapse of Wall Street? homes for sale There is no doubt that the need is not only one of the new regulation, but should re-do the whole regulatory system. The Federal Reserve, led by Alan Greenspan, tried at a time when the financial bubble grew and mortgages, a variety of instruments to be used, but they failed. Ronald Reagan's administration chose to appoint him mainly because he was not in favor of regulation.
The former president of the Federal Reserve Paul Volcker was known as controlling homes for sale inflation control, but he was dismissed because the Reagan administration took the view that such regulation is not an appropriate action. Our country is suffering from the consequences homes for sale of which stem from the fact that the leading economies was elected governor homes for sale over the people who do not believe the regulation.
Therefore, it should solve the problem, in particular, that we need a policy and political homes for sale decision-makers around the people homes for sale who believe in the regulation. In addition, it is necessary to introduce a new system that can handle the expansion of finance and financial instruments, which are different from traditional banks.
For example, it would be necessary to regulate the type incentive bonuses. Primes are expected to pay a multi-year activity, rather homes for sale than one year, according to the results, the reason for speculation disappears. Equity Stock options encourage dishonest records and should be controlled. In short - our reward system stimulated the unfair behavior of the system, and this is how we got.
We would also need a "lying homes for sale to the police." Every economic homes for sale crisis is related to the rapid growth of some types of assets, particularly, from mortgages to even tulips. If such growth to slow down, the bubbles can be kept under control. The world does not disappear when the proportion of mortgages is 25 percent instead of 10, we know it so well that we should be able to do something about it.
But first, should create a financial product safety control system, as it exists in consumer products. Financial companies have brought products to market, with the aim not to hedge risks, but to create them.
Of course, I believe the larger issue of transparency. Speaking of the current regulatory standards, they were understood in terms of technical articles. But to end, they were so diverse that no one could understand them. If all of the details of the contracts would have been open, it would not be anyone give any information on significant risk.
Financial markets were behind the decline in mortgage-backed securities, many banks and pension funds' portfolios as China, Japan, Europe and the Gulf region. How the economic crisis affects these countries? This is true. European homes for sale financial institutions through hüpoteegiaksiate loss was greater than in the United States. homes for sale The fact that the United States was able to these shares due to market globalization, distributed all over the world, in fact, mitigated homes for sale the impact of the entire homes for sale USA. If we had not allocated the risk of spread out upon the world, the United States had been in recession even worse.
One fact that as a result of the crisis became clear, the globalization of information asymmetry. For example, Europe does not have much certain that the United States mortgages differ from those of Europe - in the United States where the mortgage homes for sale exceeds the value of the cost of the house, you can go to the bank and do not give them the keys. Europe is the home loan guarantee and the Borrower will, in any event obliged to pay the agreed bank loan.
What is Wall Street's collapse in the final impact of the market economy driven by globalization? Globalization agenda was dense