Taxes are not the problem, as long as the right incentives for investments and risk taking remain in place.

I like Stiglitz for his emphasis on the importance of equal information, incentives and risks as the cornerstone or driving force of the economy (my free translation).

Unfortunately, the equal access to these three driving forces has been gradually eroded for the last 40 years and has detoriated heavily during Bush. The ever increasing dark pools of capital have gotten priority in/monopoly of information, have been allowed excessive concentration and market rigging (thus less risk as a result) and all of this has led to collapsing incentives for honest entrepreneurs and small investors to invest.

When Armstrong says that the billionairs never make money through risk taking, but merely by market rigging, he is very right. The disease during the last 10 years was that the billionairs wanted it all and were allowed to get it all. That's how they killed capitalism.