Nobel prize-winning economist Joseph Stiglitz appeared on Yahoo's Tech Ticker recently, and had some pointed words regarding the massive bank bailouts. Stiglitz, one of the bailout's most strident critics, warned that we shouldn't confuse the well-being of the larger economy with bank sector profits.
Fed Chairman Ben Bernanke's reappointment, said Stiglitz, should be the subject of a "national debate." Of the current regime of financial regulators and the billions poured into the U.S. banking sector, Stiglitz said, "Even if you thought their strategy was right, we got a bad deal [as taxpayers]."
He also argued that the Obama administration has still not figured out how the economy will be revived:
"There are so many people who think that if we get our financial markets back to health, the economy will recover. It's probably necessary, but it's clearly not going to be sufficient...Even after our banks are repaired they are not going to be lending in the irresponsible way they did before the crisis. We wouldn't want them to."
WATCH the full interview with Stiglitz at Yahoo Tech Ticker.