Article: Impact of subprime crisis to persist 2 to 3 years: Stiglitz

Impact of subprime crisis to persist 2 to 3 years: Stiglitz

BEIJING, March 21 (Xinhua) -- The impact of the subprime crisis will persist for two to three years, after which the U.S. economy will recover, the Nobel laureate U.S. economist Joseph E. Stiglitz said here on Friday.

"The Federal Reserve and Bush administration did too little, too late, and did not do the right things to redress the problem," Stiglitz told an audience at Renmin University.

The former World Bank chief economist said he believed that former Fed chairman Alan Greenspan "encouraged or contributed" to the problem by conducting an interest rate policy that had encouraged mortgage lending to U.S. families from which ...

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