[Tyler_JC]

To be honest, I haven't been following Mr. Krugman that closely.

I believe his general thesis is that the Treasury plan screws the taxpayers and that limited government resources (aka, taxpayer resources) should be spent on infrastructure, not bank rescues. The Treasury Secretary and the rest of the Obama administration is attempting to make the point that saving the banking system, rebuilding America, fixing health care, and providing tax relief to 95% of US citizens can be done in the same 6 months period...deficits be damned.

The Treasury plan DOES screw the taxpayers but we don't appear to have a choice. We need a banking system and we need to clean up the bank's balance sheets in order to have a banking system.

So instead of outright nationalization (Sweden) we are going to inject just enough taxpayer money into failing businesses to keep them afloat. Not enough to make them healthy, just enough to keep them not-dead. This is what Japan did and it did not work. Who knows, we might get lucky. If you are of the religious persuasion, I suggest prayer.

[efarmer]

Thanks Tyler_JC, that helps my understanding a good deal.
A listen to a Chomsky interview this morning was also very
interesting. It seems that all the various experts are tied to
the solution to our problems containing a vindication for their
long term beliefs and expounded theories. No surprise there
I suppose.


Pray hard is good advice indeed.

[sameu]

$this->bbcode_second_pass_quote('billg', 'E')xcellent summation of how Geithner's new scheme works:
http://www.youtube.com/watch?v=n-arbfLTCtI