Former World Bank Chief Blames Greenspan & Bush for Financial Crisis

April 28, 2008

 http://www.reuters.com/article/gc06/idUSL2719096320080427

I don’t disagree with Joseph Stiglitz’s analysis as far as it goes, but he altogether misses the main cause of the U.S. financial crisis: our “free” trade policy which has produced a $700+ billion per year trade deficit and a cumulative $9 trillion trade deficit since 1976. But what else would you expect from an economist? To lay the blame where it really lies would be to disavow their beloved “principle of comparative advantage,” the flawed, 200-year old theory upon which globalization is based.

Pete