Such is the diagnosis of the Obama solution from the Nobel prize in Economics laureate Joseph Stiglitz (h/t MakeThemAccountable)

In an interview with Democracy Now he said

the Obama administration has failed to address the structural and regulatory flaws at the heart of the financial crisis that stand in the way of economic recovery. Stiglitz also talks about why he thinks Obama’s strategy on Afghanistan is wrong and that Obama’s plan to keep a “residual force” in Iraq will be “very expensive.” On health care, Stiglitz says a single-payer system is “the only alternative.”

More specifically, the interview took place after that bestest speech and on the banks Stiglitz said

is he holding the banks accountable?
JOSEPH STIGLITZ: Well, so far, it hasn’t happened. I think the more fundamental issues are the following. He says what we need is to get lending restarted. If he had taken the $700 billion that we gave, levered it ten-to-one, created some new institution guaranteed—provide partial guarantees going for, that would have generated $7 trillion of new lending. So, if he hadn’t looked at the past, tried to bail out the banks, bail out the shareholders, bail out the other—the bankers’ retirement fund, we would have easily been able to generate the lending that he says we need.

Asked as to why bankers rather than banks are being saved

MY GOODMAN: Why is Obama saving these bankers?

JOSEPH STIGLITZ: Well, we could all guess about the politics. We know one of the problems about American politics is the role of campaign contributions, and that’s plagued every one of our major problems.

And he remarked that most other countries in the world are taking more efficient measures than us.

I didn’t get a Nobel prize and still struggle to understand economics, but I figured this one out the moment the financial crisis was in the news

Obama beholden to Wall Street – how can he reform it?

But I admire Stiglitz’s integrity. Unlike some low self-estime bloggers, the fact that he had conversations with Obama during the campaign didn’t melt his brain.

The sad part however is that the conversations with Stiglitz didn’t leave a trace on Obama either.

On the same topic, as a bonus, also via Make them accountable, Fiore’s cartoon – Zombie Bank

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