The NYT, in an editorial, categorically rejects Geithner’s bank rescue plan. It is an unswerving rejection of Treasury’s assumption that the auction system through which it proposes to dispose of the troubled assets will value them properly. But more importantly, it reflects a lack of faith — even among the converted — in the ability of government to keep from playing favorites where such sums are concerned. Geithner’s bank rescue plan, coming on the heels of the AIG scandal, had to be both financially sound and politically viable to keep the administration’s credibility from cracking. With liberal economists like Krugman already against Geithner’s plan, the categorical rejection of Geithner’s plan by the NYT implies that the Obama administration is running out political places to hide.
Tuesday, March 24, 2009