‘Selling Us Short: The Limits of Markets (and Governments)’, with Joe Stiglitz and Jim Chanos

Today, we live streamed an important conversation with Nobel prize winning economist Joe Stiglitz and legendary market guru Jim Chanos, president of the world’s largest short-selling hedge fund. The topic, “Selling Us Short: The Limits of Markets (and Governments).”

The conversation explored the end of so-called free market fundamentalism - the failings of the ideology, the system it propagated, and those who promoted it. Stiglitz and Chanos considered the economic principles that should underpin the organization of markets and society and examined interests and paradigms that constrain bold action.

There are perhaps no better two people to explore this dynamic topic. Joe Stiglitz challenged the idea of an “efficient market,” arguing that contrary to popular belief, markets are almost always inefficient because information is almost always imperfect. One of the most renowned ’short-sellers’ in the world, Jim Chanos makes money by buying stocks he believes the market is over-pricing and betting on their decline. Notable recent ’shorts’ include financial-sector and real estate stocks. His first well-known short was Enron. Jim who currently manages close to $7 billion, says “short-selling plays the role of real-time financial watchdog. It’s one of the few checks and balances in the market.”

This live streamed event is part of the larger project — New Deal 2.0 — created by the Roosevelt Institute to explore the profound effects that our current economic choices may have on our country for decades to come.