The Nobel Prize for Economics: absurd paradox,
blame speculators targeting weaker governments
ROME 
'E' an absurd paradox, in Europe you - heats Joseph Stiglitz, Nobel Laureate in Economics, 2001 - an irony of history. Can not you see? Governments have contracted many debts to save the financial system, the central bank keep rates low to help recover as well as encourage them to return. And what does big business? Use low rates of interest to speculate against the governments debt. They can make money on the disaster that they themselves have created. "
What can happen now?
"Wait. It's not over here. Governments monitor lizard austerity measures to reduce debt. I agree that markets are not sufficient to speculate on their fall titles. So the governments are forced to additional austerity measures. Ordinary people lose even more, the big business earns even more. The moral of this story is: guilty rewarded, punished the innocent. "
How can I fix it?
"Three points. First, no money for speculation. In the United States as in Europe, you have to make new rules for banks. Have to finance productive enterprises, not hedge funds. We must stop him to speculate. "
One word. If the government is to manage the credit risk is to distribute it even worse.
"I do not think so. In my opinion, can and must intervene. Second point: we must impose very high taxes on capital gains. Today it is more profitable to speculate that work for a living. Needs to play to the contrary. "
And then?
'third point: in Europe you have to support governments in difficulty. "
The risk to reward politicians who govern badly.
"No. The test gives Spain. Today is in trouble without making mistakes. The government had a budget surplus until all'altr'anno, the Central Bank has been monitoring the banks very well, so that is cited for example in the world. What have? Of course, they also saw an increase in the bubble, the housing market, and they did not stop. But is the error that made all. It was in the spirit of the times. Inspired by the neo-liberal ideology that has dominated for many years. "
In Greece, however, are wrong. They also rigged the accounts.
"Do not the current government, the previous year. Were affected by the crisis of commercial shipping, an important sector for them, and the decline of tourism. Well, why do we force people to make even more sacrifices, if not at fault? ".
debt there. Sooner or later, the States must pay it back.
"But why do we have to listen to the markets? The markets do not behave in a rational manner, we have seen in the way which produced the crisis. So why should they have reason to ask for more sacrifices to the citizens of those countries? In addition, even if they behave in a way too erratic. And finally, here is an ongoing attack speculative: it is that if one does not hit well, is that if you can make out you are out. "
How can we do in Europe?
"You have to build mechanisms of solidarity between states. The Union devas have more resources. We spend a lot of money to the Common Agricultural Policy, which is a waste, but ... "
could issue of European titles, the Eurobonds.
"Sure. And then the harmful activities should be taxed. Above two: finance and carbon emissions. In the United States. "
Obama will manage to impose itself on the banks?
"It will be a long battle. But the anger of the people is strong, and the president knows. The bankers have against the rest of the population. "
Congress is reluctant.
"I hope that we should not come to another crisis, before being able to put the finances under control. It would be really sad. Think about how much damage they caused. Did you know that according to rpevisioni the CBO, the Congressional Budget Office, unemployment will start to decline are in the middle of the decade? These are things that remain long in the memory of the people. "
'E' an absurd paradox, in Europe you - heats Joseph Stiglitz, Nobel Laureate in Economics, 2001 - an irony of history. Can not you see? Governments have contracted many debts to save the financial system, the central bank keep rates low to help recover as well as encourage them to return. And what does big business? Use low rates of interest to speculate against the governments debt. They can make money on the disaster that they themselves have created. "
What can happen now?
"Wait. It's not over here. Governments monitor lizard austerity measures to reduce debt. I agree that markets are not sufficient to speculate on their fall titles. So the governments are forced to additional austerity measures. Ordinary people lose even more, the big business earns even more. The moral of this story is: guilty rewarded, punished the innocent. "
How can I fix it?
"Three points. First, no money for speculation. In the United States as in Europe, you have to make new rules for banks. Have to finance productive enterprises, not hedge funds. We must stop him to speculate. "
One word. If the government is to manage the credit risk is to distribute it even worse.
"I do not think so. In my opinion, can and must intervene. Second point: we must impose very high taxes on capital gains. Today it is more profitable to speculate that work for a living. Needs to play to the contrary. "
And then?
'third point: in Europe you have to support governments in difficulty. "
The risk to reward politicians who govern badly.
"No. The test gives Spain. Today is in trouble without making mistakes. The government had a budget surplus until all'altr'anno, the Central Bank has been monitoring the banks very well, so that is cited for example in the world. What have? Of course, they also saw an increase in the bubble, the housing market, and they did not stop. But is the error that made all. It was in the spirit of the times. Inspired by the neo-liberal ideology that has dominated for many years. "
In Greece, however, are wrong. They also rigged the accounts.
"Do not the current government, the previous year. Were affected by the crisis of commercial shipping, an important sector for them, and the decline of tourism. Well, why do we force people to make even more sacrifices, if not at fault? ".
debt there. Sooner or later, the States must pay it back.
"But why do we have to listen to the markets? The markets do not behave in a rational manner, we have seen in the way which produced the crisis. So why should they have reason to ask for more sacrifices to the citizens of those countries? In addition, even if they behave in a way too erratic. And finally, here is an ongoing attack speculative: it is that if one does not hit well, is that if you can make out you are out. "
How can we do in Europe?
"You have to build mechanisms of solidarity between states. The Union devas have more resources. We spend a lot of money to the Common Agricultural Policy, which is a waste, but ... "
could issue of European titles, the Eurobonds.
"Sure. And then the harmful activities should be taxed. Above two: finance and carbon emissions. In the United States. "
Obama will manage to impose itself on the banks?
"It will be a long battle. But the anger of the people is strong, and the president knows. The bankers have against the rest of the population. "
Congress is reluctant.
"I hope that we should not come to another crisis, before being able to put the finances under control. It would be really sad. Think about how much damage they caused. Did you know that according to rpevisioni the CBO, the Congressional Budget Office, unemployment will start to decline are in the middle of the decade? These are things that remain long in the memory of the people. "
