Another segment of Chris’ and my interview with Nobel economist Joe Stiglitz. In this segment, Stiglitz talks about the mortgage crisis in America, and about the Dodd-Frank banking bill (he’s not a fan).

Stiglitz on the mortgage crisis:

“We could have avoided this, but the bankers didn’t want it, and unfortunately the Obama administration gave in to the bankers. They kept listening to the bankers in the design of the programs that would help owners, and they kept putting forth programs that many economists that looked at them said they’re not going to work. They didn’t listen, they didn’t work, and here we are years after the bubble broke still trying to deal with this problem.”

He goes on to to say that Dodd-Frank bill didn’t go far enough.

“The market has no confidence in the banking sector. There’s a lot of non-transparency. And that means when rumors go around about what is going on, everybody knows they don’t know. The consequence is that we are once again at a risk of a freezing of the credit system.”

Previous interview snipets:

Stiglitz : Probabilities of a double dip recession “certainly have increased significantly” (3:17 long)

Stiglitz : Obama administration and the Fed have demonstrated an “inability to make economic judgements.” (1:09 long)

Stiglitz : “The Fed is very good at creating problems, not so good at resolving them…. QE3 won’t help” (6:46 long)

Stiglitz : “The only thing that can be done (to help the economy in the near term) is fiscal stimulus, spending more money.” (1:01 long)