The Corner

The Further Debunking of Dr. Joseph Stiglitz

From a reader:

Hi: re Joe Stiglitz, Fannie, and Freddie, you might be interested in footnote 6 in this paper:

http://www.aei.org/publications/filter.all,pubID.28704/pub_detail.asp

Money quote:

“Interestingly, Stiglitz today is an outspoken critic of GSE risk-taking.

According to Stiglitz, GSE risk-taking was a predictable consequence

of the structure of the GSEs and their financial structure and compensation schedules.”

[And here] is the now classic open letter from Kenneth Rogoff:

http://www.imf.org/external/np/vc/2002/070202.htm

Money quote:

“Do you ever think that, just maybe, Joe Stiglitz might have screwed up?

That, just maybe, you were part of the problem and not part of the solution?”

Peter Robinson — Peter M. Robinson is a research fellow at the Hoover Institution.
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