Debating the toxic

Fianally comes the long awaited Obama-Geithner plan (click here) to clean America's bank from toxic asset.

But Krugman attack the plan as causing despair. head investor won and tail investor loose. (click here)

If government is subsidizing private investor and protecting them from risk, why bother. Just do it directly and nationalize the bank. Those director should be held responsible for their action.

No more USD 165 million bonus after destroying the financial system.

Bradford de Long provided Q& A version of the plan here. But its positive tone is criticize by Krugman (click here).

Let the debate continue.