Wednesday, October 1, 2008

Good day for democracy

Joseph Stiglitz

( university professor at Columbia University and recipient of the Nobel prize in 2001. He was chief economist at the World Bank at the time of the last global financial crisis
The Guardian, Wednesday October 1 2008

"What are we to make of the Congressional rejection of the Paulson proposal? The politics is simple: elections are a rare moment of accountability in our political process, and all 435 members of the House of Representatives are up for re-election in a matter of weeks. The Bush administration has lost the confidence of the American people, and so has Wall Street.....

A sad day for Wall Street, but it may be a glorious day for democracy. Hopefully Congress will now devise a plan that is not based on trickle-down economics. A plan that identifies the real sources of the problem and does something about them - a real stimulus to the economy, a real programme to stem the flood of foreclosures, and a transparent programme for filling the holes in bank balance sheets. A plan that assures US taxpayers the costs will be borne by those who created the problem. Accountability means paying for the full consequences for one's actions - and the financial system has much to account for."

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