More comments on the Geithner plan
Suffice it to say that I believe the administration is subsidizing/propping up weak institutions at the expense of the strong. We are pursuing a policy of "No Bank Left Behind" rather than performing proper triage -- separating out the weak institutions, letting them fail and then resolving the assets through the receivership/FDIC process. You can see the folly of this prop up policy approach by looking at what AIG is reportedly doing -- using its government subsidy/backing to undercut stronger insurers on price in an attempt to stem the defection of customers.
For a much more detailed examination of this issue, please check out the just-released white paper entitled "Dangerous Unintended Consequences."