Paul Krugman is appalled at the Obama Administration’s apparent willingness to keep insolvent banks afloat forever:
As long as capital injections are seen as a way to bail out the people who got us into this mess (which they are as long as the banks haven’t been put into receivership), the political system won’t, repeat, won’t be willing to come up with enough money to make the system healthy again. At most we’ll get a slow intravenous drip that’s enough to keep the banks shambling along.
I’m surprised that he’s surprised. They don’t know what else to do. And Tim Geithner is still looking at the banking system through the same prism as he’s used for the last six years. What else would you expect him to do?
Why this criticism of Tim Geithner? Didn’t you get the memo that he’s the indespensable man? LOL
They are making the Japanese mistake.