Krugman: 'Plan Better Than Expected+Maybe A Trojan Horse That Smuggles-THE RIGHT POLICY-Into Place'

[kpete]

February 10, 2009, 1:51 pm
The Rorschach plan (wonkish, or at least hard to read)

An old joke from my younger days: What do you get when you cross a Godfather with a deconstructionist? Someone who makes you an offer you can’t understand.

I found myself remembering that joke when trying to make sense of the Geithner financial rescue plan. It’s really not clear what the plan means; there’s an interpretation that makes it not too bad, but it’s not clear if that’s the right interpretation.

The plan deserves praise for what isn’t in it, at least as far as I can tell. There doesn’t seem to be provision for mass purchases of toxic waste at premium prices; there also doesn’t seem to be a massive “ring-fencing” guarantee against private losses on bad assets. In that sense the plan is better than what the last few weeks of leaks led us to expect.

.............

So what is the plan? I really don’t know, at least based on what we’ve seen today. But maybe, maybe, it’s a Trojan horse that smuggles the right policy into place.

more at:
http://krugman.blogs.nytimes.com/2009/02/10/the-rorschach-plan-wonkish-or-at-least-hard-to-read/

[Baikonour]

1. In before Krugman bashing.

[Orrex]

7. Krugman bashers?!? I'll kick their butts!

:grr::mad::grr::mad::grr:

[Captain Hilts]

2. Krugman would write "better THAN expected." nt

[kpete]

3. than...

thanks, kp

[Captain Hilts]

5. You got it. Thanks for posting this thread. nt

[mzmolly]

4. I like Paul Krugman and feel he has a right to critique the President. Considering

the source, this is GREAT to read. Thanks!

:kick:

[Captain Hilts]

6. Obama has an instinct to seek middle ground. So, we need to keep tugging on him. nt

[anonymous171]

10. Just like with FDR. nt

[Captain Hilts]

11. Yep. nt

[WhaTHellsgoingonhere]

8. Wow, wasn't expecting that! Woo hooo!! n/t

[Fire1]

9. From your lips to God's ears.