The leaked Obama plan to rescue the banks has Krugman up in arms. He writes:
The Obama administration is now completely wedded to the idea that there's nothing fundamentally wrong with the financial system — that what we're facing is the equivalent of a run on an essentially sound bank. As Tim Duy put it, there are no bad assets, only misunderstood assets. And if we get investors to understand that toxic waste is really, truly worth much more than anyone is willing to pay for it, all our problems will be solved.
I hope to God Obama and Geithner come up with something better than this. The impression that Wall St and Washington are working to conspire against the people is stronger than ever, and nothing short of dramatic action will quell the fear. And that means putting Wall St in its place with more than testy language. It means action.
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