there was no way to do the resolution that joe stiglitz suggests. they asked for that authority and don't get it. so one thing it tells sus that both in the market and in congress, there is a kind of giant sigh of relief that the worst of the nightmare is over, and we are starting to see it return to the kind of behavior maybe a little complacency which is quite alarming given the many problems that lurk out there. >> why do we think the nightmare is over, because the markets have been trading better, and there's something about a rising stock market that makes people feel good. with health care being sort of front and center right now with the administration, is financial reform taking a back seat? are we losing the momentum? >> i think there's a chance of that. it looks to me like barney frank in the house is quite committed to pushing a bill through the congress. it's not so clear that the senate can get its act together. it seems to be the same storyline for almost every topic you talk about. one thing i think will be quite interesting is presid

nobel laureate joe stiglitz, who'd come to the beauty show from columbia university, wasn't. >> france and a number of other european countries have said we have to stop this bonus culture. it's bad for our society, the system of bonuses encourages short-sighted behavior, excessive risk taking clearly played a role. the united states seems to be reluctant to do anything. >> reporter: in fact, the obama administration does back removing financial incentives for risky behavior, but it opposes french president nicolas sarkozy's push for bonus caps. >> reporter: stiglitz, worried about a global relapse, thinks the g-20 should be doing a lot this week. >> what they should do is resolve to continue the stimulus package until its clear that were into a robust recovery. second thing, we really need to fix our financial system. here in the united states, i think our financial system in many ways-- the problems are worse because we allowed the too big to fail banks to get even bigger. we let the moral hazard problems to get worse because we announced in effect that we will bail out shareholders,

joe stiglitz wasere to blst the g20, about to convene amidst heav security just a few miles away. >>what go on behind tse clod doors will affect the lives ofll of us l over the world. >> rerter: an actist with nob prize stret credit ieglitz has a critique chaing the.d.p.--total output-- has become aarge lousy measure of eonomic well-being byailing to account for growth's costs let me give you one exame. 30years ago we weren' talking about clate change, envonmental degration was not as important asit is tod. >> reporter: the septemberheat the pitbur pe almost seemed to ke the case for hm. but stiglitz has anher problem with g.d.p. as a measur that growth in tot output masks gring inequality which, as it happens, was the the of the tent cit next door. >> g.d.p. has been going up per capi but most americans are actually rse off. so median household income is actlly falling. >> rporter: meanwhile, however, reviving world gross domestic product reinsthe key jective of the g20. the delegaes gatringowntown has various proposals for that revival: tougheregulation of bank capital requirements

joe stiglitz was here to blast the g-20, about to convene amidst heavy security just a few miles away >> what goes on behind those closed doors will affect the lives of all of us all over the world. >> reporter: an actist with noble prize street credit, stieglitz has a critique charging the g.d.p.-- total output-- has become a large lousy measure of economic well-being by failing to account for growth's costs let me give you one example. 30 years ago we weren't talking about climate change, environmental degradation was not as important as it is today. >> reporter: the september heat in the pitburg pews almost seemed to make the case for him. but stiglitz has another problem with g.d.p. as a measure. that growth in total output masks growing inequality which, as it happens, was the theme of the tent city next door. >> g.d.p. has been going up per capita but most americans are actually worse off. so median household income is actually falling. >> reporter: meanwhile, however, reviving world gross domestic product remains the key objective of the g-20. the delegates gathering downtown h