Nobel Prize winning economist: "Nobody has respect for that kind of model anymore" (US capitalism)

[Hugabear]

http://www.washingtonpost.com/wp-dyn/content/article/2008/10/09/AR2008100903425_pf.html

<snip>
Given that the United States has held itself up as a global economic model, the change could shift the balance of how governments around the globe conduct free enterprise. Over the past three decades, the United States led the crusade to persuade much of the world, especially developing countries, to lift the heavy hand of government from finance and industry.

But the hands-off brand of capitalism in the United States is now being blamed for the easy credit that sickened the housing market and allowed a freewheeling Wall Street to create a pool of toxic investments that has infected the global financial system. Heavy intervention by the government, critics say, is further robbing Washington of the moral authority to spread the gospel of laissez-faire capitalism.

The government could launch a targeted program in which it takes a minority stake in troubled banks, or a broader program aimed at the larger banking system. In either case, however, the move could be seen as evidence that Washington remains a slave to Wall Street. The plan, for instance, may not compel participating firms to give their chief executives the salary haircuts that some in Congress intended. But if the plan didn't work, the government might have to take bigger stakes.

"People around the world once admired us for our economy, and we told them if you wanted to be like us, here's what you have to do -- hand over power to the market," said Joseph Stiglitz, the Nobel Prize-winning economist at Columbia University. "The point now is that no one has respect for that kind of model anymore given this crisis. And of course it raises questions about our credibility. Everyone feels they are suffering now because of us."
<snip>

[saltpoint]

1. Hey. I mean, what does that hifalutin Nobel guy know, anyway?

John McCain said the fundamentals of the U.S. economy are strong.

[charlie]

9. World Bank weirdo

Probably couldn't get a real job at a United States bank.

[saltpoint]

11. Hey charlie.

Great to see you!

:hi:

[midnight]

2. Capitalism - A model for no regulations.....Let the chips fall where

they must, but give us a bail out first. No wonder these business types make no sense to me.

[daninthemoon]

6. yet, i can't imagine them sweating about this. they are going to be allright.

they may even prefer a society completely divided between those who have all, and those who have none. maybe this was the ultimate plan of the walker bushes 100 years ago.

[hatrack]

3. Feh. Sounds like some kind of ELITIST, if you ask ME!!!

Nobel Prize, whatever.

[Hugabear]

4. Columbia University, no less

A known haven for learned intellectuals, liberal professors, and peace-loving hippies. :hide:

[Jennicut]

5. Laissez- Faire capitalism never works.

Its a terrible idea to let the system have no regulations in it.

[malaise]

7. Bingo

Neoliberalism is fucking dead - good riddance.

[BrainStorm]

8. The only "Invisible Hand" is ethics.

And that's not part of anyone's economic model. Or most people's general makeup.

[JitterbugPerfume]

10. Milton Freidman and his ilk have

failed .It is time for a new model. The economy is organic, not cold hard science with no room for error .

NO , I am not anti science .If anything I am pro science ,so dont go there