When the bailout bill was first pitched and sold by the Bush Administration, Congress and the American people were told that the plan was to isolate "toxic assets" from the balance sheet of U.S. banks. I thought the plan sounded like a good one.
But it never happened. Team Bush never did implement the plan in its waning weeks in office. Team Obama didn’t seem that keen on it, either.
Until today. President Obama and his treasury secretary, Tim Geithner, unveiled the Bush/Obama plan to relieve banks of these dubious assets. The stock market soared on the news.
But uber liberal Paul "I love Sweden" Krugman of the New York Times hates the "cash for trash" plan, as he calls it. It won’t work, says he. It’s a give-a-way to the private sector partners who will participate.
I don’t know. These are difficult times and I’m no expert on such things. But knowing Krugman hates it makes me feel better about its chances of working.