Commentary: How to prevent the next Wall Street crisis - CNN.com

Nobel Prize-winning economist Joseph Stiglitz

"Why did the Fed fail?

First, key regulators like Alan Greenspan didn't really believe in regulation; when the excesses of the financial system were noted, they called for self-regulation -- an oxymoron.

Second, the macro-economy was in bad shape with the collapse of the tech bubble. The tax cut of 2001 was not designed to stimulate the economy but to give a largesse to the wealthy -- the group that had been doing so well over the last quarter-century. 

The coup d'grace was the Iraq War, which contributed to soaring oil prices. Money that used to be spent on American goods now got diverted abroad."

Stiglitz delivers a brief, lucid and revealing analysis, but then goes on to offer a sterling set of practical solutions that--given the level of pure guff going around the campaigns--have almost no chance of being used anytime soon.