Editing Joseph Stiglitz (section)

===Criticism of rating agencies===
Stiglitz has been critical of [[Big Three (credit rating agencies)|rating agencies]], describing them as the "key culprit" in the [[2008 financial crisis]], noting "they were the party that performed the alchemy that converted the securities from F-rated to A-rated. The banks could not have done what they did without the complicity of the rating agencies."<ref name=Neate1>{{cite news|last=Neate|first=Rupert|title=Ratings agencies suffer 'conflict of interest', says former Moody's boss|url=https://www.theguardian.com/business/2011/aug/22/ratings-agencies-conflict-of-interest|access-date=April 21, 2012|newspaper=The Guardian|date=August 22, 2011|location=London}}</ref>

Stiglitz co-authored a paper with [[Peter Orszag]] in 2002 titled "Implications of the New Fannie Mae and Freddie Mac Risk-Based Capital Standard" where they stated "on the basis of historical experience, the risk to the government from a potential default on GSE debt is effectively zero." However, "the risk-based capital standard ... may fail to reflect the probability of another Great Depression-like scenario."<ref name=fanniemae>{{cite web|url=http://www.pierrelemieux.org/stiglitzrisk.pdf|title=Implications of the New Fannie Mae and Freddie Mac Risk-Based Capital Standard|publisher=[[Fannie Mae]]|access-date=February 10, 2010|url-status=dead|archive-url=https://web.archive.org/web/20091122094851/http://www.pierrelemieux.org/stiglitzrisk.pdf|archive-date=November 22, 2009}}</ref>