NY Times’ Krugman turns on Obama & Geithner, rejects latest rescue plan

Lordy, Lordy, Lordy. It’s hand-wringing time in the Big Apple.

Treasury Secretary Tim Geithner’s latest bailout plan is causing a personal crisis of confidence for Paul Krugman, the New York Times’ Nobel-prize winning economist.

The plan is supposed to convince private investors to take up to $1 trillion in toxic assets off the hands of troubled banks.

“This is more than disappointing,” Krugman said in the Times. “In fact it fills me with a sense of despair.”

“It’s as if the president were determined to confirm the growing perception that he and his economic team are out of touch, that their economic vision is clouded by excessively close ties to Wall Street. And by the time Mr. Obama realizes that he needs to change course, his political capital may be gone.”

You know things are bad when we’re not pleased by anything that causes despair in Paul Krugman.

Source: New York Times