Odds and Ends

Nobel Prize-winning economist says NO to Nama

By admin ⋅ October 8, 2009 ⋅  Email This Post ⋅  Print This Post ⋅ Post a comment

Nama is a bad idea said Professor Joseph Stiglitz, a Nobel Prize-winning economist, on Wednesday night while addressing Trinity College’s historical society. Nama is likely to “burden this generation for 25 to 50 years or more. I am very uncomfortable with a government with such a minority support making such a decision.” 

The view that there is no alternative is “just wrong” he said. “There is an alternative. Play by the rules of capitalism – if you can’t pay back your debt, shareholders and bondholders lose.  If the Government puts in money, it needs to get control commensurate with the money put in. It also should get a return proportionate to the risk involved – in this case, it’s a big risk.”

For more on Prof. Stiglitz’s views see:
Trinity talk – http://www.irishtimes.com/newspaper/finance/2009/1008/1224256168742.html
State squandering money – http://www.irishtimes.com/newspaper/breaking/2009/1007/breaking45.htm
Opposition urges Nama rethink -
http://www.irishtimes.com/newspaper/breaking/2009/1007/breaking61.html

Tags: Bad bank, Economics, economist, Fianna Fail, Fine Gael, Good bank, Green Party, Irish economy, Irish government, Irish politics, Labour, NAMA, National Asset Management Agency, Nobel Prize, Opposition, politics, Prof Stiglitz, Stiglitz, Trinity College