Treasury Secretary Geitner's toxic asset plan to take months

The Bloomberg report on the latest US plan makes gloomy reading for any hoping for an early resolution to the ever deepening credit crunch, read it here. A quote with this blog editor's emphasis: Critics including Paul Krugman, a winner of the Nobel Prize for economics, advocate that the government take over banks loaded with devalued assets, remove their top management, and dispose of the toxic securities. Sweden adopted that approach in the 1990s. Krugman said in a New York Times opinion piece today that Geithner’s strategy won’t work because it “assumes that banks are fundamentally sound and that bankers know what they’re doing.”