[lbo-talk] Why did Stiglitz endorse Volcker?

Doug Henwood dhenwood at panix.com
Mon Nov 10 10:11:36 PST 2008


On Nov 10, 2008, at 12:44 PM, Patrick Bond wrote:


> Hey, devoting massive amounts of income to debt repayment and
> deindustrialising huge swaths of the Rust Belt weren't such easy
> tasks for manufacturing fractions of capital during the Volcker
> years. The turn to finance turned GM into a basket case, desperate
> for profit flows from GMAC - until the real estate crunch. Abd the
> ag and energy fractions weren't happy either. It's been a long time
> since I read Greider's book on this, but doesn't he make all this
> clear?

Our friends Leo & Sam got it straight from the horse's mouth - the CEO of GM.

I'm pretty sure that ADM was happy to see the costs of its inputs go down.


> But so, Doug, none of the rest of the critique of Volcker I laid out
> is objectionable?

No. Raising interest rates towards 20% and keeping them there probably killed millions of people. I have no problem with saying that.

Doug



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