by Calculated Risk on 2/04/2009 02:58:00 PM

From Martin Wolf, Why Davos Man is waiting for Obama to save him

Instead of an overwhelming fiscal stimulus, what is emerging is too small, too wasteful and too ill-focused. Instead of decisive action to recapitalise banks, which must mean temporary public control of insolvent banks, the US may be returning to the immoral and ineffective policy of bailing out those who now hold the “toxic assets”.
emphasis added

And Yves Smith shreds the new plan: The Bad Bank Assets Proposal: Even Worse Than You Imagined

[T]his program is a crock ... it has [been] cooked up in the complete and utter absence of any serious due diligence on the toxic holdings of the big banks.

Exactly. Get in there and find out what they are holding. If the banks are insolvent, Nationalize Preprivatize them.