Wednesday, May 6, 2009
Bust 'em Up!
"Instead of funneling taxpayer money into big financial firms, the government should take the radical step of breaking them up into smaller, more transparent companies, top economists told lawmakers Tuesday. 'We have little to lose, and much to gain, by breaking up these behemoths, which are also too big to save and too big to manage,' said 2001 Nobel Prize recipient and Columbia University Prof. Joseph Stiglitz, one of the witnesses testifying bewfore the Joint Economic Committee of Congress Tuesday morning. He argued that big institutions are more likely to take excessive risks that backfire and distort markets. ... He voiced skepticism that the Troubled Asset Relief Program would be sucessful, because it paves the way for big banks to continue to dominate the US financial system", Maya Randall at the WSJ, 22 April 2009.
I have advocated limiting bank size for about 25 years. Does that make me a "top economist" too?