The Bailout

Paul Krugman shares some skepticism about the financial system bailout:

I hate to say this, but looking at the plan as leaked, I have to say no deal. Not unless Treasury explains, very clearly, why this is supposed to work, other than through having taxpayers pay premium prices for lousy assets.

He contrasts the present bailout with the S&L bailout, noting that there is "nothing that gives taxpayers a stake in the upside, nothing that ensures that the money is used to stabilize the system rather than reward the undeserving."

But I suspect that's the point of the plan.