On CNN.com today, Joseph Stiglitz lists his Top 6 prescriptions to fix Wall Street (quoted far below).  The best ones are his call for a "Financial Product Safety Commission" (Prof. Warren has been saying this for years) and for the elimination of predatory lending.  <i>If it's good enough for exploding toasters, it's good enough for investment vehicles.</i>

But we can start today, and defeat the Debtor Barrons.  The Center for Responsible Lending lists 2 ways we can defeat predatory lending on November 4th.  Predatory lending takes place in EVERY bank, no matter how big and "well respected", and not just in the darkness on the edge of town.  It's putting the final death grip on the middle class in addition to locking the poorest among us into a lifetime of servitude.

Here are the 2 ballot initiatives:

1.  Ohioans, vote "YES" on Issue 5 -- Learn more at http://www.end391.org

2.  Arizonans, vote "NO" on Prop. 200 -- Learn more at http://www.200isnoreform.com/

Joseph Stiglitz:

1. We need first to correct incentives for executives, reducing the scope for conflicts of interest and improving shareholder information about dilution in share value as a result of stock options. We should mitigate the incentives for excessive risk-taking and the short-term focus that has so long prevailed, for instance, by requiring bonuses to be paid on the basis of, say, five-year returns, rather than annual returns.

2. Secondly, we need to create a <b>financial product safety commission</b>, to make sure that products bought and sold by banks, pension funds, etc. are safe for "human consumption." Consenting adults should be given great freedom to do whatever they want, but that does not mean they should gamble with other people's money. Some may worry that this may stifle innovation. But that may be a good thing considering the kind of innovation we had -- attempting to subvert accounting and regulations. What we need is more innovation addressing the needs of ordinary Americans, so they can stay in their homes when economic conditions change.

3. We need to create a financial systems stability commission to take an overview of the entire financial system, recognizing the interrelations among the various parts, and to prevent the excessive systemic leveraging that we have just experienced.

4. We need to impose other regulations to improve the safety and soundness of our financial system, such as "speed bumps" to <b>limit borrowing</b>. Historically, rapid expansion of lending has been responsible for a large fraction of crises and this crisis is no exception.

5. We need <b>better consumer protection laws</b>, including laws that <b>prevent predatory lending</b>.

6. We need better competition laws. The financial institutions have been able to prey on consumers through credit cards partly because of the absence of competition. But even more importantly, we should not be in situations where a firm is "too big to fail." If it is that big, it should be broken up.