Flashback 2009. How Nobel Prize Winning Economist Joseph Stiglitz Blew It On Fannie And Freddie

Flashback 2009. The Business Insider reports:

How could three prominent economists have been so dumb-foundingly wrong about the systemic risk of Fannie Mae and Freddie Mac?

Today's Wall Street Journal discusses a 2002 paper declaring that "on the basis of historical experience, the risk to the government from a potential default on GSE debt is effectively zero." It's authors were Jonathan Orzag, Peter Orszag and Joseph Stiglitz, who had won the Nobel prize in economics the year before. We've embedded it below so you can read the whole thing.

When you don't have "skin in the game" you think like Joe Stiglitz.