“Stiglitz: Wall Street’s Hot Air Is Inflating Recovery” reports:
“Wall Street investors are hyping up the pace of global recovery so they can buy and sell more stocks, says Nobel Economist Joseph Stiglitz.
“Stock prices around the world have way outpaced economic growth over the past year, with the MSCI World Index of stocks surging 73 percent since March.
“’Wall Street is talking up the recovery because it would like to sell stocks,’ says Stiglitz, according to Bloomberg.
“Stocks are making gains not on recovery but on low interest rates and company cost-cutting programs, both factors that point to weak economies, Stiglitz says.”
WATCHDOG: Just pacing the floor, hoping to hear the sound of the engine of recovery pulling into the garage. A wag of the tail for Stiglitz. He is as good an economist as they come, and a straight shooter.
