Krugman on the Citigroup bailout. Or perhaps “weak, arbitrary, [and] incomprehensible” is the better phrase. The fact that Citigroup’s shareholders are apparently not even going to get much of a haircut (let alone the wipeout that should be the no-questions-asked starting point for any bailout of this magnitude) is particularly appalling. Is there some sort of “Queens’s only skyscraper” exemption to representing taxpayer interests that I’m unaware of?
And, of course, this provides stark evidence about how much damage Bush will be able to do in his last lame duck months.