The Bank Plan

Today, the administration's plan for toxic assets held by banks was "unveiled". More precisely, it was leaked in bits and pieces and then discussed by the treasury secretary. In response (supposedly) the stock market went up in dramatic fashion. It is important to understand the motivation of the market. this is not a vote of confidence in the plan. There are still too many details unknown to tade stocks based upon the expected outcome of this plan. Rather, the market reaction was at best a major sigh of relief that The Obamacrats (or should they be called "Obureacrats") have finally managed to come forward with a plan of sorts. Remember, there has been no question since election day that Obama would need a plan to deal with the problems of the banks. He had the transition period of three months to get things ready. He managed to do prepare nothing regarding the banks -- the lynch pin of our economic recovery. then the administration began in earnest. for more than two months we have waited and waited and waited as Obama and Tim Terrific (or more accurately just the treasury secretary) worked on this plan. Indeed, for a plan that seems like it was put together in a few hours to take two months to complete is unforgiveable.

Let me be clear: the plan may work or it may not. I do not see enough of the details to have a firm view as to its likelihood of success. What is unforgiveable, however, is the delay in producting the plan.

One wonders how long it would take Obama to respond to other types of crises. Imagine what would happen in a nuclear attack -- Maybe we would respond within a month.