Paul Krugman judges the plan

"No deal," Krugman avers. Why? Because

  • the plan might work, but only if the Treasury Department pays above-market prices to collect Wall Street's garbage and, more importantly, God smiles on the wicked;
  • the plan fails to identify and express the reasons that it will work;
  • and the plan refuses to impose a quid pro quo on the miscreants.

In other words, the plan is morally bankrupt and irrational, although Krugman is much too polite to say this. He is also too polite to point out that the plan in effect transforms the federal government into Wall Street's bagman.

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