So for the past two days, I've been reading about Geithner's plan - and the responses in the economics blogosphere, which by a large majority are not only negative, but incredulous.

Like Naked Capitalism's Yves Smith, who had this to say on the Geithner plan:

If this isn't Newspeak, I don't know what is. Since when is someone who puts 3% of total funds and gets 20% of the equity a "partner"?

[...] So presumably, the point of a competitive process (assuming enough parties show up to produce that result at any particular auction) is to elicit a high enough price that it might reach the bank's reserve, which would be the value on the bank's books now.

And notice the utter dishonesty: a competitive bidding process will protect taxpayers. Huh? A competitive bidding process will elicit a higher price which is BAD for taxpayers!

Dear God, the Administration really thinks the public is full of idiots. But there are so many components to the program, and a lot of moving parts in each, they no doubt expect everyone's eyes to glaze over.

But you know, I think the proposed Public Investment Corp. is much more than this. I think maybe we all missed the point. This plan is the economic equivalent of the ShamWow! It's like a chamois, it's like a towel, it's like a sponge! (And Geithner - isn't that a German name? You know the Germans always make good stuff!)

Toxic assets? Put it on that nasty spill, it all comes up - with no mildew underneath. Then simply rinse and wring! Bad paper? Without even putting on any pressure, just put it on the CDOs and they're gone! You'd be out of your mind not to own one of these!

All I can say is, "ShamWOW!"