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Krugman Not Happy With Financial Policy

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By Ben Cohen

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.