Columnist says bank rescue is weak and getting weaker.
President Obama finally won some praise last week from New York Times columnist and longtime antagonist Paul Krugman for his budget, but the Nobel Prize winning economist blasts the administration once again today over its plan to rescue finance. "Among people I talk to there's a growing sense of frustration, even panic, over Mr. Obama's failure to match his words with deeds," Krugman wrote in his column. "The reality is that when it comes to dealing with the banks, the Obama administration is dithering." According to Krugman, White House officials have been floating unpopular and insufficient plans to temporarily patch up banks rather than take more drastic actions to quickly deal with insolvent banks. Krugman favors temporary nationalization to get rid of insolvent "zombie" banks that soak up federal aid without becoming viable again.
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