Stiglitz: As Far as I Know, CDOs Squared Didn't Solve World Peace

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And back at the let's break-the-banks-or-not Davos game--today: Stiglitz gives his two cents. The Nobel Prize laureate, on team Roub-WB, is calling for more regulation.

"When they win they walk off with the profits, when they lose the taxpayer pays," he pointed out. "We really need to go more directly at these issues like incentives."


The "regulation will stifle innovation argument" also doesn't fly with him and he's having a hard time seeing how, exactly, the innovative banking products in the past 10 years helped society.

"You ask what was the social value of the CDO squares? They were doing things we should have known were stupid," he said.

Stiglitz: Regulate Banks. Now. Everywhere. [CNBC]

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