“This is going to be one of the worst economic downturns since the Great Depression,” said Stiglitz. (Nobel Prize Winner 2001/Columbia University professor)
He explained that the main cause of the current situation is historically unique—and thus is befuddling those charged with creating solutions.
Other downturns were primarily caused by excesses in inventories or inflation; but this slowdown is due to the condition of “badly impaired” banks and financial entities, which are unwilling and/or unable to lend capital — stymieing the very borrowers who usually drive the country back to vitality, Stiglitz said. And the Federal Reserve may have used up its ammunition — and the faith investors and planners have put in it.”
Stiglitz co-hosted CNBC this afternoon for a couple of hours. How they let his bearish self in and on for so long is quite remarkable given CNBC's usual obsession with optimistic only, bullish guests.
The interview is worth watching here.
Cory’s Chart Corner
- Boom-Bust repeat. History calls B.S on "it's different this time", it's always different.
h/t Jessie Felder
about 9 hours ago
- Very impressive...however, given we're a consumption led economy, robots will become just another channel of wealth… https://t.co/OcCREIZbuL
about 12 hours ago
- What determines an inverted yield curve w/QE distortions and a short end at 1.25%...does the 10 yr really have to g… https://t.co/9NEwz1H25x
about 2 days ago
- Boom-Bust repeat. History calls B.S on "it's different this time", it's always different. h/t Jessie Felder
“An explosive critique about the investment industry: provocative and well worth reading.”
“Juggling Dynamite, #1 pick for best new books about money and markets.”
“Park manages to not only explain finances well for the average person, she also manages to entertain and educate, while cutting through the clutter of information she knows every investor faces.”