[Flame Of Liberty]

Originally Posted by Iowa_Flames_Fan

As for Azure hitching his wagon to Paul Krugman--I'm gratified to see that. Krugman is probably right, of course. He's a Nobel-Prize winner and knows his stuff. But Azure failed to mention the central reason why Krugman thinks the bailout will fail: it's too small.

Originally Posted by Paul Krugman

But the real problem with this plan is that it won’t work. Yes, troubled assets may be somewhat undervalued. But the fact is that financial executives literally bet their banks on the belief that there was no housing bubble, and the related belief that unprecedented levels of household debt were no problem. They lost that bet. And no amount of financial hocus-pocus — for that is what the Geithner plan amounts to — will change that fact.

Haha. Priceless.