Obama's "Bank Plan"

Sadly, the Obama administration does not "get it" when it comes to the banks. Here's Paul Krugman's assessment from his NY Times blog site:

Every plan we’ve heard from Treasury amounts to the same thing — an attempt to socialize the losses while privatizing the gains. We’re going to buy up all the bad assets at premium prices; no, we’re going to offer the banks guarantees against losses; no, we’re going to let private investors buy the stuff, but offer them de facto guarantees against losses in the form of non-recourse loans.

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And the insistence on offering the same plan over and over again, with only cosmetic changes, is itself deeply disturbing. Does Treasury not realize that all these proposals amount to the same thing? Or does it realize that, but hope that the rest of us won’t notice? That is, are they stupid, or do they think we’re stupid?

The fact is, as Upton Sinclair supposedly said, "It's hard to get someone to understand when their salary depends on them not understanding." In this case, Congress, Obama, and Bush all received huge payments through the lucrative lobbyist effort paid for by the financial industry. That I think makes it very, very hard for Obama to have a serious "plan" to fix the banks.