Reaction to Geithner's Toxic-Asset Plan

Now that Treasury Secretary Tim Geithner's $1 trillion plan to buy toxic assets off the books of banks has been out there for a few hours and has begun to be digested, here are some reactions to it:

-- Noted economist James Galbraith (son of James Kenneth) called the plan "extremely dangerous" in an interview this morning with Henry Blodget, a stock blogger (and former trader who paid $2 million to settle, without admission of wrongdoing, a securities fraud charge by the SEC). Blodget lists what he calls the misconceptions and facts of the plan.

-- At Seeking Alpha, Felix Salmon calls it "Geithner's Doomed Bailout Plan."

-- At the same site, Brad DeLong supports the plan, with a provocatively headlined piece called, "Why I Think Paul Krugman Is Wrong." (You can read Krugman's criticism of Geithner's plan here.)

-- In Forbes, Joshua Zumbrum lays out the possible winners and losers in the plan.

-- At the New Republic, Clay Risen is worried about setting prices for the toxic assets. On TNR's main page, the top story is headlined: "The Geithner Disaster."

-- Finally, you can read about the plan here in Geithner's own words, in an opinion piece in today's Wall Street Journal.

-- Frank Ahrens
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