I find myself in agreement with the New York Times editorial on the Geithner Plan:
In other banking crises, both in this country and abroad, resolution of a systemwide problem has sooner or later involved separating solvent banks from insolvent banks. In the end, there is no getting around firing the executives at failing banks, acknowledging the losses, wiping out the shareholders and then deciding how the government can best restructure the institutions. The Obama administration has yet to explain why its approach is better than that.
Japan’s lack of willingness or, perhaps, ability to do that resulted in a “lost decade”, a full ten years of economic doldrums. Recessions are a normal part of the business cycle. Prolonging a recession really takes government action.
Amen, bro.
I suppose I should be more wordy, but why? Its all been said. Team Obama is following failed Japanese policies.