Professor Ricardo Caballero, head of the top ranked MIT economics department defended the Geithner Plan: click here.
He is making the same mistake in confusing "banks" with the current crop of Wall Street leaders.
Yes, we need bankers. But the world will not stop if the current group of "masters of universe" leave the scene, as they should do.
By kowtowing to these people, we are saying effectively we need the arsonists to help us put out the fire they helped set. What about the classic issue of "moral hazard" in banking?