Rising voices in mutual support? Yesterday, I referenced Joe Nocera's column in the NY Times. Today, Gretchen Morenson weighed in with much the same disappointment as she explained why her…

I’ve been saying for weeks, in various conversations, that one reason  the “crisis in confidence” has transformed fear into anxiety, is the Fed’s feckless attempts to “cure the economy”. The initial bailout plan stalled as cooler heads insisted on accountability and a clear plan of action, but the tide of uncertainty washed it ashore in some vague $750 billion bailout.

The stated intention was to buy toxic mortgage securities to relieve the liquidity crisis. Many of us were dubious in the ensuing days and weeks because the markets did not react favorably to the bailout. In addition to the history of failed government programs, my skepticism was fueled by the shortsighted decision to let Lehman fall, the fact that AIG burned through its $85 billion in a few weeks and needed $40 billion more and the surprise, at least to many, of the overnight fall of Washington Mutual.

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