debt-crisis, look-back-a-bit

Joseph E. Stiglitz
2007-07-01 The Asian Crisis Ten Years After
Some similarities exist between the situation then and today: before the 1997 crisis, there had been rapid increases in capital flows from developed to developing countries – a six-fold increase in six years.
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2008-03-21 Jeffrey D. Sachs
The Roots of America’s Financial Crisis
To a large extent, the US crisis was actually made by the Fed, helped by the wishful thinking of the Bush administration. One main culprit was none other than Alan Greenspan, who left the current Fed Chairman, Ben Bernanke, with a terrible situation. But Bernanke was a Fed governor in the Greenspan years, and he, too, failed to diagnose correctly the growing problems with its policies.
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2008-09-30 Joseph E. Stiglitz
Bailout Blues
The problems in the US economy and financial system have been apparent for years. But that didn’t prevent America’s leaders from turning to the same people who helped create the mess, who didn’t see the problems until they brought us to the brink of another Great Depression, and who have been veering from one bail-out to another, to rescue us.
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2008-09-15 Robert Skidelsky

Farewell to the Neo-Classical Revolution

Such market optimism led to de-regulation of financial markets in the 1980’s and 1990’s, and the subsequent explosion of financial innovation which made it “safe” to borrow larger and larger sums of money on the back of predictably rising assets. The just-collapsed credit bubble, fueled by so-called special investment vehicles, derivatives, collateralized debt obligations, and phony triple-A ratings, was built on the illusions of mathematical modeling.
But if we look at the historical record, the liberal regime of the 1950’s and 1960’s was more successful than the conservative regime that followed. Outside China and India, whose economic potential was unleashed by market economics, economic growth was faster and much more stable in the Keynesian golden age than in the age of Friedman; its fruits were more equitably distributed; social cohesion and moral habits better maintained. These are serious benefits to weigh against some business sluggishness.
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March 4, 2010
how_the_monsters_at_goldman_sachs_caused_a_greek_tragedy
In 2001, Goldman’s financial alchemists formulated a scheme to allow the Greek government to hide the extent of its rising debt from the public and the European Community’s budget overseers. Under this diabolical deal, Goldman funneled new capital from super-wealthy investors into the government’s coffers.
Fine. Not so fine, though, is that, in exchange, Greek officials secretly agreed that the investors would get 20 years’ worth of the annual revenue generated by such public assets as Greece’s airports. For its part, Goldman pocketed $300 million in fees paid by the country’s unwitting taxpayers.
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