Economist Krugman Still Not Sold on Geithner’s Bank Rescue Plan Despite Dow’s Uptick and Rise in Home Sales

Despite the Dow’s uptick today and the rise in home sales, economist Paul Krugman remains “saddened” by today’s detailed version of Geithner’s bank rescue plan. Appearing on the PBS NewsHour this evening (Monday), Krugman argued the plan treats only a small symptom of the real problem.

PBS correspondent Jeffrey Brown interviewed Krugman and Don Marron, financier and CEO of Lightyear Capital, a private equity firm. Marron spoke in favor of today’s version of the bank rescue plan. No transcript of the discussion is available as yet at the PBS web site.