Usui Reiki - A Spiritual Energy In Motion by Reverend Dr Lance Provides information about a Spiritual energy that comes from God thu... [673 words]
Reiki Questions And Answers by Reverend Dr Lance Reiki Questions and Answers provides information about a Spiritual energy that come... [1,961 words]
The Progressive Movement : Final Opportunity For A Change In The Status Quo by Joseph Albrecht To Glenn Beck, his audience, and ev... [1,029 words]
Nutrition Nation: A Guide For Moving Forward by Joseph Albrecht Current information about our nation's nutrition dilemma and propo... [698 words]
Why To Say No To G.M.O. by Joseph Albrecht Helpful information about genetic engineering of our foods.Feel free to leave a comment... [1,198 words]
Alternative And Holistic Health Information by Joseph Albrecht This is information which I've recieved from various quality scient... [428 words]
Nike And The Like: The American Birth Of Globalization by Joseph Albrecht An ivestigation of the detrimental process of globalizat... [1,818 words]
New Progressive News On Failing Economy
'question Of The Week' by Spencer A Morin Answer this question for a story about what you want if you win. I will comment the winn... [45 words]
The First Man Reincarnated Alerts The Public by Lloyd George Been Been THE FIRST MAN REINCARNATED ALERTS SOCIETY OF HISTORY FACTS AND HIS... [2,169 words]
Money : All The Wrong Reasons by Joseph Albrecht How the U.S. seems to be ripping apart at the seams. [680 words]
The Physical And Psycological Benefits Of Exercise by Joseph Albrecht Information from Joe Henderson (Consulting Editor of "Runne... [384 words]
Michael Jackson: The Legacy! by Dream Rinsed Let's see if all of that controversy bullshit can out rank the following list. ... [143 words]
Galactic Empire Chronicles Ship List by Nathaniel A Miller Ship List for Stories: "The Galactic Empire Chronicles." A listing that fe... [1,214 words]
Proper Termination And Mobile Termination For All A-Z From 7aaa Corp. by Viktor Shark Wholesale VoIP carrier proper termination... [54 words]
Taking Them Down by Todd Fry I will be taking down all that I have posted last year on storymania.by the end of this year ... [64 words]
Confederacy by Emilee Brown The governmental structure of the Confederacy is very important to our nation today. One of the mai... [2,505 words]
Battle Of Gettysburg by Brett Goldberg Battle of Gettysburg occured during July 1-3 1863. This battle changed American Society [7,927 words]
Making Money From Nothing by Matthew Mark Your Rich No seminar here just cold hard facts.. [362 words]
How To Be A Good Person by Matthew Mark Gill With God Changing your life today! [166 words]
Becoming Famous! by Matthew Mark Gill Money Making dreams a Reality. [348 words]
Quotes by Mark Bowen These are quotations to inspire you. [2,185 words]
Computer ‘Hackers’ ‘Nerds' by Josh Anderson Ever wondered what shaped and does shape the computer hacker / nerd / programmer? We... [1,605 words]
Novel To Screenplay: The Challenges Of Adaptation by Lynne Pembroke Some basic steps when adapting a novel to the screenplay form... [970 words]
Contest Advice For Screenplay Writers by Lynne Pembroke Help to the writer by a judge of several major TV script and screenplay c... [983 words]
Doc's Recomendations by David B Doc Byron - [342 words]
Medical Mishaps: A Fact Of Life by James Cartwright Another essay written for my contemporary issues class. Not particularly well w... [494 words]
Twilight Of Summer by Charles Cotterman A reflection on my first days of college, my hopes for the coming year, and advice for all n... [1,169 words]
Rise! P.O.D.’S Satellite Blasts Off by G Sandberg A review of the band's latest album. [544 words]
Food For Thought: Writing For Readers by Martine Hayes I think the site [Storymania] is absolutely brilliant, it gives people th... [588 words]
Go to page: 1 
New Progressive News On Failing Economy
After hearing and learning about our current crises,I sometimes find myself hopeless that the information isn't more mainstream. I was glad to see this piece by economist Joseph Stiglitz who won the Nobel economic prize for his remarkable work. This information presents people with honest research and can answer many important questions one may have.
I am a Senior Nutrition Student, poet, who is passionate about people and planet. Check out my book. "My World in Words: A Collection of Passionate Poetry." www.joe-in-the-know.blogspot.com. Twitter:@JoeAlbrecht6
|AUTHOR'S OTHER TITLES (48)
A Blessing And A Curse (Poetry) Poem about speaking my feelings to another who didn't feel the same. [75 words]
A New School Of Thought: Insights On Our World (Reference) Notes I took on a lecture with Noam Chomsky and Angela Davis about foreign policy, education, media, culture, the environment and other issues. [502 words]
Age Difference Diamante (Poetry) A different style of poetry that changes to the opposite of what you began with (in my case, after the word "mindful". It also has the shape of a diamond; hence the name Diamante [14 words]
All Clear For Nuclear (Non-Fiction) A paper on the benefits of nuclear nonproliferation. [1,005 words]
Alternative And Holistic Health Information (Reference) This is information which I've recieved from various quality scientific studies. My sources for the information are listed as well. Hope you find it to be of good use. [428 words] [Health]
Book Review: Re-Made In The Usa-Todd Lipscomb (Non-Fiction) Americans wanting to help heal their nation should read this inspiring book. [156 words]
Breaking Down Nanotechnology: Some Key Issues Of Concern (Reference) Information about the controversial use of nanotechnology, and how to avoid it. [3,020 words] [Health]
Cherish (Poetry) - [68 words]
Climate Change: Alarms And Silencers (Non-Fiction) Where the most insightful voices are coming from to weigh in on climate change. [448 words]
Don't Double Down (Elo Cover) (Songs) So congress lets banks pay just 0.75 percent while doubling student loan rates from 3.4 to 6.8... [164 words]
Fight Fire With Fire (Short Stories) A short story I wrote about an oil company at odds with everyday people and Mother Nature. [2,367 words]
Foods And Drinks For Health (Reference) A menu for various types of ailments, consisting of foods and drinks shown to be effective. [663 words] [Health]
Fruit Of The Earth: My Joy Of Homesteading (Non-Fiction) About gardening from scratch. [442 words] [Motivational]
Horseshoes & Hand Grenades (Poetry) - [94 words]
I'll Go (Songs) Song lyrics I wrote about modern times and how people react. [163 words]
It's Real (Songs) Some song lyrics that I wrote about eveyday life. Every part is fully original and my own work. [162 words]
Katrina's Dance (Songs) Sung to "Katrina's Dance" by The Rippingtons [323 words]
Key Points Of Mother Jones Article On Sugar (Reference) Details about "Sweet Little Lies" (November/December 2012) that one may want to read about. [613 words] [Health]
Less And More (Poetry) - [95 words]
Letter To Nyc Mayor Bloomberg (Non-Fiction) A call to action on behalf of struggling NYC workers. [241 words]
Media Commentary And Invitation To A Different Life (Non-Fiction) Living the life of sustainability which many just preach about. [295 words]
Military Might (Poetry) "The pathway to least resistance always overcomes strength" -Sensei Ryu Okoyama [68 words]
Military Mighttaxpayer Fright (Non-Fiction) How those outside the beltway view America's militarism and imperialistic policies. [789 words]
Money : All The Wrong Reasons (Reference) How the U.S. seems to be ripping apart at the seams. [680 words]
My Reasons For Writing (Songs) Some information about me. [356 words]
My World In Words (Poetry) My book of poems is out! "My World in Words: A Collection of Passionate Poetry." [9 words]
Nike And The Like: The American Birth Of Globalization (Reference) An ivestigation of the detrimental process of globalization. The consequences are often overlooked by un informed or careless consumers. [1,818 words] [Motivational]
Noam Chomsky (Poetry) A tribute to an inspiring man who seeks truth. [99 words]
Nutrition For Overall Well-Being (Non-Fiction) Key information on how our choices of food/beverages/herbs & spices affects our health and well-being, a lot of information covered with important links/ references. [949 words] [Health]
Nutrition Nation: A Guide For Moving Forward (Reference) Current information about our nation's nutrition dilemma and proposed solutions. [698 words] [Health]
Our Worth In Earth (Poetry) - [89 words]
Politically Charged (Poetry) - [83 words]
Politically Charged Bars (Poetry) - [381 words] [Motivational]
Reflections Of Life (Poetry) - [136 words]
Rocky Anderson's Speech On Political Duopoly (Non-Fiction) A speech by this year's Justice Party Candidate and former Mayor of Salt Lake City, Ross C. "Rocky" Anderson. [1,398 words]
Shoot For The Moon: If You Miss, You Need A Bigger Gun (Non-Fiction) A piece on America's fervent addiction to the second amendment. [549 words]
Sunday Mornings (Short Stories) A description on how our kitchen looks on sunday mornings and the events that happen throughout the rest of the day. (Not finished yet) [699 words]
Taking A Closer Look (Non-Fiction) Reinforcement of beliefs, values, and curiosity can help throughout life. [373 words] [Motivational]
The Paycheck Of Perversion (Poetry) - [120 words]
The Physical And Psycological Benefits Of Exercise (Reference) Information from Joe Henderson (Consulting Editor of "Runner's World") as well as from www.garynull.com http://garynull.com/GNthisArticle.php?article=30 Thank You. [384 words] [Self-Help]
The Power Of Nonviolence (Non-Fiction) A speech by Dr. Martin Luther King Jr. clarifying what nonviolent resistance is and what effects it can have on society and the world. [207 words] [Motivational]
The Progressive Movement : Final Opportunity For A Change In The Status Quo (Reference) To Glenn Beck, his audience, and everyone out there who unfortunately is mislead about what a Progressive really is [1,029 words]
The Right To Work For Less (Non-Fiction) A piece about the current state of American working conditions. [422 words]
U.S. Vs Them (Songs) I've created this to express my thoughts in a creative way, rather than just bombarding people with news. Every part of this is entirely original and 100% my own work. [148 words]
What We Are Not Told About War (Non-Fiction) This is information that I have gathered from two books: 'Death of the Liberal Class' and ;Blackwater: The Rise Of The World's Most Powerful Mercenary Army' [2,401 words]
Why To Say No To G.M.O. (Reference) Helpful information about genetic engineering of our foods.Feel free to leave a comment of wht you think. It's encouraged. [1,198 words] [Health]
Words Of Emotions (Poetry) Searing words on the tragedies and potential solutions of the USA today. [286 words]
.Number One. (Songs) Some song lyrics I wrote about me. Please leave a comment on what you think thank you. [166 words]
New Progressive News On Failing Economy
Economist Joseph Stiglitz: Put Corporate Criminals in Jail
By SAM GUSTIN
Posted 6:30 AM 10/22/10 Economy, People, Investing, Real Estate
Comments Print Text Size A A A
Print this page|EmailShare on FacebookShare on TwitterShare on DiggShare on LifestreamAn institutionalized system of skewed incentives allowed Wall Street bankers and other corporate executives to gamble with America's wealth and then get away largely scot-free after the house of cards came tumbling down, plunging the U.S. into the worst economic crisis in decades and destroying trillions of dollars of wealth worldwide.
That's the analysis of Joseph Stiglitz, an internationally renowned economist and winner of the 2001 Nobel Prize in economics. (His latest book, Freefall: America, Free Markets, and the Sinking of the World Economy, is just out in paperback.)
During a wide-ranging interview with DailyFinance at AOL headquarters in New York City this week, Stiglitz, who served as chief economist of the World Bank from 1997-2000 and is currently University Professor at Columbia University, explained how the availability of cheap money (thanks in large measure to former Fed Chairman Alan Greenspan), combined with outright mortgage fraud and deceptive and predatory lending practices put millions of people into homes they couldn't afford and caused real estate prices to skyrocket. That created a bubble that would inevitably pop. (See video below, or read the full interview transcript.)
"Festering For Years"
"We have to understand that the problems have been festering for years, not just the last three years," said Stiglitz. "In the years prior to the breaking of the bubble, the financial industry was engaged in predatory lending practices, deceptive practices. They were optimizing not on producing mortgages that were good for the American families but in maximizing fees."
Meanwhile, stock-based compensation created further skewed incentives by encouraging executives to pursue short-term stock gains at the expense of long-term corporate sustainablity, Stiglitz said, and in some cases encouraged them to deceive their own shareholders.
Highly complex financial instruments and off-balance-sheet transactions allowed the bankers to keep much of their activity hidden from woefully understaffed regulators at the SEC and other supposed financial watchdog agencies. And if the regulators did catch some fraud, Stiglitz explained, the system of penalties generally meant a small fine relative to the full ill-gotten gains, often in the hundreds of millions of dollars.
"Still Home Sitting Pretty"
Legal penalties for financial fraud in the U.S. have become "just a cost of doing business," Stiglitz said. "It's like a parking fine. Sometimes you make a decision to park knowing that you might get a fine because going around the corner to the parking lot takes you too much time."
"We fine them, and what is the big lesson?" said Stiglitz. "Behave badly, and the government might take 5% or 10% of what you got in your ill-gotten gains, but you're still sitting home pretty with your several hundred million dollars that you have left over after paying fines that look very large by ordinary standards, but look small compared to the amount that you've been able to cash in."
Taken together, Stigliz said, this system of widespread fraud, lax regulation and non-deterrent enforcement, created a system of skewed incentives that rewarded criminality, gambling and other bad behavior, and left American workers, investors and homeowners holding the bill.
Meanwhile, the astonishingly disproportionate influence of the big banks and corporations on the American political system has allowed powerful executives to exert their will on the U.S. government at the expense of the people, Stiglitz said.
"Five or Six Banks Equal to 300 Million People"
"Look at the regulatory reform that got passed," said Stiglitz. "It was an intense battle. And you had on one side a few banks. And on the other side you had 300 million people, American people. And it was really right in balance. Five or six banks equal to 300 million people. And in the end we got what you might call an unsatisfactory compromise."
"Corporations are a legal entity," Stiglitz explained. "We create them. And when we create them we create all kinds of rules. They can go bankrupt. And that means they owe more money and they get away scot-free. They can create an environmental disaster, and then go bankrupt and again go away scot-free. So, as legal entities we have the right to make the rules that govern them."
"As individuals we have certain basic rights," Stiglitz continued. "We aren't created by the law. We exist by nature. But corporations are man-made. They are supposed to serve our interest, our society's interests. And we are creating them with powers that are not serving our society's interests."
"A Vicious Cycle"
Unfortunately, he continued, we now have a situation where the owners of major American corporations, the shareholders, have virtually no say in compensation, the very thing that created many of the skewed incentives that led to the bad behavior.
"If you're going to rob your shareholders, shouldn't they have the right to say I don't like this?" asked Stiglitz. "It's basically a vicious cycle in which we've gotten ourselves, because the corporate executives control the corporations. The corporations have the right to give campaign contributions. So basically we have a system in which the corporate executives, the CEOs, are trying to make sure the legal system works not for the companies, not for the shareholders, not for the bondholders -- but for themselves."
"So it's like theft," said Stiglitz. "These corporations are basically now working for the CEOs and the executives and not for any of the other stakeholders in the corporation, let alone for our broader society."
What should be done? "I think we ought to go do what we did in the S&L [crisis] and actually put many of these guys in prison," said Stiglitz. "Absolutely. These are not just white-collar crimes or little accidents. There were victims. That's the point. There were victims all over the world."
A Theory of Justice
Among the casualties of this whole mess, according to Stiglitz? Faith in the legal system itself. "The legal system is supposed to be the codification of our norms and beliefs, things that we need to make our system work," he said. "If the legal system is seen as exploitative, then confidence in our whole system starts eroding."
"When you say the Pledge of Allegiance, you say, with 'justice for all," Stiglitz said. "People aren't sure that we have justice for all. Somebody is caught for a minor drug offense, they are sent to prison for a very long time. And yet, these so-called white-collar crimes, which are not victimless; almost none of these guys, almost none of them, go to prison."
"Families are as important as corporations," he said. "Keeping kids in school, not forcing them out of their home, keeping the community together, is certainly as important as keeping a corporation alive."
Submit Your Review for New Progressive News On Failing Economy
Required fields are marked with (*).
Your e-mail address will not be displayed.
Submit Your Rating for New Progressive News On Failing Economy
© 2010 Joseph Albrecht
|STORYMANIA PUBLICATION DATE
|NUMBER OF TIMES TITLE VIEWED