We interviewed Nobel Prize-winning economist Joe Stiglitz on Friday about the bank bailout. And I focused on two key questions. What’s wrong with the idea of buying the ‘toxic assets’ from the banks? And just what happens if we let these banks go bankrupt instead of continuing to prop them up with continuing bailouts?
Full-size video at TPMtv.com.
Late Update: On a related note, Paul Krugman has chimed in on his reaction to Geithner. His reaction is similar to others I’ve heard: It doesn’t include a lot of the terrible ideas we’d been led to believe. It also includes the kernels of what could be very good ideas (i.e., the bank “stress tests”). But in general, it’s just not clear what the plan even is.