Paul Krugman is in Despair over financial policy this morning, now that the details of Geithner’s Public Private Investment plan for overpaying for, I mean, dealing with toxic assets has been released.

According to the report in the New York Times, "Toxic Asset Plan Foresees Big Subsidies for Investors"

Private investors, then, would be contributing as little as 3 percent of the equity, and the government as much as 97 percent.

From an article I cited previously

Goldman appears almost excited to participate in the ‘bad bank’ process sponsored by the government, however, not as a seller…but as a buyer."

Hedge funds and private equity firms are no doubt rubbing their hands together about this too