Krugman sounds the alarm

Paul Krugman is really, really upset--and he's not alone. The Geithner toxic assets plan will be announced Monday but details are already available. Read Krugman's take below. As this and the AIG bonuses fiasco are showing, what to do with the insolvent bank, mortgage and insurance institutions is the big issue, more so than the stimulus plan. Krugman thinks Obama could be making huge and potentially fatal (for his administration) mistake here. Hopefully he's wrong--and if not, that Obama is paying attention.

"Despair over financial policy"

"More on the bank plan"

Meanwhile, a cry has gone up (!) for Prof. Krugman to come the rescue and replace Mr Geithner.


But as Calcutated Risk reminds us Krugman himself thinks this is a bad idea:

And for those of you wondering about yours truly — I’m temperamentally unsuited, have never had any desire for the job, and probably have more influence as an outside gadfly than I ever could in DC.