A lot of debate on the blogosphere about the bank plan (or bank "plan") that Timothy Geithner rolled out. I'm giving the benefit of the doubt to the Administration. Mainly, it seems to me the hesitation of the Administration is belied by the debate between a "solvency crisis" and a "liquidity crisis," and how much of the banks fall into one or the other.
It's unfortunate, however, that Geithner didn't present that honestly and forthrightly, in a way that could still give some confidence to investors. Presenting both possibilities, for instance. Giving a window into their thought process. Leaving us in the cold, playing Treasury-ology, is not very productive. I have faith, as other bloggers do, that Obama and Geithner are privately contemplating nationalization in some places, recapitalization in other places (after all--banks that bust get nationalized whether we want to or not). But the strategy, the philosophy, is unclear.
