Nouriel Roubini, economist and dark knight of the current crisis, today savaged the Paulson bailout in an article posted at his website.

Among his points: "purchasing toxic/illiquid assets of the financial system is not the most effective and efficient way to recapitalize the banking system."

And "the claim by the Fed and Treasury that spending $700 billion of public money is the best way to recapitalize banks has absolutely no factual basis or justification."

"This way of recapitalizing financial institutions is a total rip-off that will mostly benefit – at a huge expense for the US taxpayer – the common and preferred shareholders and even unsecured creditors of the banks."

Douglas A. McIntyre