Unlike the "everything is rosy" Larry Summers, Joseph Stiglitz is a serious economist. He's also been a lot more right about this economy than the White House economic team. Throwing wads of cash at Wall Street and expecting them to do the right thing has been a serious mistake. To date, we have yet to see a significant change in attitudes from Wall Street. This is why they are on pace to make the same amount of money this year as the year before the crisis hit. Sure, Goldman pulled a PR stunt and told us that 30 out of 31,000 will not receive bonuses but that is hardly a dent in the bonus pool.
Nobel Prize-winning economist Joseph Stiglitz warned there's a "significant" chance the U.S. economy will contract in the second half of next year, and urged the government to prepare a second stimulus package to spur job creation.
"The likelihood of this slowdown is very, very high," Stiglitz told reporters in Singapore. "There is a significant chance that the number will be in the negative range."
