Private or Public?

Is the administration's attempt to preserve a private banking system although the public will be financing it fair to the new group of stockholders, we taxpayers? Paul Krugman would say no. I think he's right. We seem to be moving toward a system where we put up the money and the guys who failed will be running the show.

Krugman also raises the very difficult question of the valuation of bank's assets. He thinks that the administration might use computer models rather than the price these assets would fetch in the marketplace today. What's wrong with letting the markets decide the value?

To make the administration's leanings even more galling, the Washington Post makes the claim that “the administration is likely to refrain from imposing tougher restrictions on executive compensation at most firms receiving government aid” because “harsh limits could discourage some firms from asking for aid.” Which statement on its face is ludicrous.