A lot of serious people are questioning the Obama economic team. Paul Krugman has accused the administration of dithering. Henry Blodget is not feeling like the ship of state is under control. Willem Buiter feels that the Fed is working at cross purposes to correcting the fundamental problem. And Ralph Nader, perhaps the last principled liberal left in the US, is questioning the sanity of it all.
Outside the US, Secretary Geithner does not engender a lot of confidence. Earlier this week we saw reports of potential FDIC troubles. In the meantime, private markets already seem to be moving in the direction of saving the banking and housing systems, without taxpayer assistance.
So why do we need Geithner and Bernanke lavishing taxpayer guarantees on their friends and colleagues on Wall Street? At what point does Obama own this fiasco? The Paulson/Bernanke initiative last fall was roundly criticized. I don't think a lot has changed in this administration and that cannot be overlooked indefinitely.