Monday, March 9, 2009

How to fail to recover the economy

America provides important lessons to countries around the world facing increasing problems with their banks

Joseph Stiglitz, Sunday 8 March 2009

"......The era of believing that something can be created out of nothing should be over. Short-sighted responses by politicians – who hope to get by with a deal that is small enough to please taxpayers and large enough to please the banks – will only prolong the problem. An impasse is looming. More money will be needed, but Americans are in no mood to provide it – certainly not on the terms that have been seen so far. The well of money may be running dry, and so, too, may be America's legendary optimism and hope."

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