Does Paul Krugman need a tag-team partner? In a New York Times op-ed Nobel Prize winner Joseph E. Stiglitz slams Timothy Geithner’s and President Obama’s $500 billion bank rescue plan, saying it recreates the situation that led to the financial crash—it uses "overleveraging in the public sector, excessive complexity, poor incentives and a lack of transparency." In the Geithner plan, the government essentially takes on banks' losses by overpaying for toxic assets, a system Stiglitz calls "far worse than nationalization." In fact, he argues, nationalizing the banks would be preferable to the Geithner plan, which essentially privatizes gains and socializes losses.
Read it at The New York Times
