According to the National Bank of Canada, there is bad news and there is really bad news. Yesterday, the bank reported that Canadians now hold nearly 25 dollars of debt for every 100 dollars of net worth. That's a higher ratio than we've seen for forty years. But the really bad news is why it's happening. It's not because Canadians have suddenly started racking up their credit cards or taking out second mortgages. It's because the value of our financial assets -- homes, investments, businesses -- is so much lower than it used to be since the global recession began.
And according to Joseph Stiglitz, there's an even more fundamental problem. He says that the people who manage the U.S. financial system haven't done what's necessary to prevent the same kind of scenario from unfolding again. Joseph Stiglitz is a Nobel-Prize-winning economist. He's just written Free Fall: America, Markets and the Sinking of The World Economy and he joined The Current for an interview.