Joe Stiglitz explains
This is from a post at TPM:
… Use government muscle (either in dollars or guarantees) to buy the ‘toxic assets’ from the banks at prices pretty close to the high prices the banks want to believe they’re worth rather than the much lower prices that a lot of economists (and let’s remember, the market) say they’re worth. So, if that’s such a bad idea, why do we keep coming back to it.
I posed this question to Joe Stiglitz back in early February. And this is what he said:
You can see the rest of our Stiglitz interview here.
