POLITICS

TARP II: Krugman Slams Obama Plan For Second Bailout

03/01/2009 05:12 am ET | Updated May 25, 2011

On Thursday, news came out that Treasury officials are planning a second bank bailout -- one that could cost another $1 to $2 trillion.

In a blog post titled simply "Bad," New York Times columnist Paul Krugman calls the proposal "Hankie Pankie II," and writes:

"[I]t occurred to me that an updated version of an old Communist-era joke may be appropriate: under Bush, financial policy consisted of Wall Street types cutting sweet deals, at taxpayer expense, for Wall Street types. Under Obama, it's precisely the reverse."

Krugman was not a fan of the first bailout either.

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