“You are a sinner state and you were punished by the markets, not Germany”

Joe Stiglitz, David McWilliams and two other economists at the Google Zeitgeist European event, ably chaired by Stephanie Flanders… Really really good conversation. There’s a few good ideas flying around in there… Some classy needling between McWilliams and the German guy, out of which the title is just one memorable quote…

Read also:

Larry Elliott in the Guardian

Martin Wolf in the FT

Joe Stiglit and Michael Cragg in the Irish Times

–  And Pete on how politics into economics in the Euro crisis just won’t go

  • aquifer

    Stiglitz notes that the productive assets of the real economy are still present in a debt laden country.

    Part of the trick may be to have efficient insolvency procedures so that businesses can continure to trade and employ people where possible.

    Deflacionary policies impact on the working poor and prevent economic innovation.

    And what is the impact on women of this man made recession?

  • I suppose we are to England as Greece, Portugal and Ireland are to Germany, beneficiaries of the Transfer Union.

    Certainly strengthens the argument for the bird in the hand and not pursuing lower corporation tax.

  • wee buns

    How Mc Williams retains a sense of humor in such company I’ll never know. The German arrogance is so, well, German. ‘Europeanism is not communism’……..yes Herr Stiglitz I think we noticed.

    Ideas such as ‘moral hazard’ and Ireland having been a ‘financial crack house’ whose ‘sinners must be educated’ belong to the corruption ridden churches whose life force is bleeding down the drain of history…

    The Icelanders offer to pay ‘their’ debts in fish. We should offer to pay ‘ours’ in Guinness.

  • Greenflag

    A good discussion on the ‘parameters’ within which a resolution to this ‘bank’ engendered crisis will be found .

    McWilliams is right to laugh for truly ALL the so called elected political leaders within the EU have a major responsibility for this mess . In the first instance by following the Wall St herd mentality and allowing the national banking systems to be come gambling casinos dealing in worthless CDO’s .

    Even the ‘stolid’ Deutsche Bank’ Germany’s foremost bank is now facing charges of fraud and corruption before a US Federal Congressional committee . And these are the ‘institutions ‘ to which Irish taxpayers are expected to ‘bail out’

    As for the German’s ‘arrogance’ -He’s just the front man for the ECB/IMF standard operating dictaphone . The Englishman is just defending the so called “free market” which of course is imaginary in the matter of most of the fiscal and monetary products that were served up by the international banking community in the past several . Joe Stiglitz got stuck in the middle but probably realised that not only has his own Government disregarded his sage advice but the ECB is in no mood to listen either .

    The bankers are NOT listening and our ‘politicians ‘ everywhere have long since lost the cojones to make them listen . The ECB is hoping to get through to 2013 before any major ‘restructuring ‘ by which time the international bondholders will have been paid back enough that they don’t risk undermining the stability of the German and French banks.