The Financial Times puts it pretty succinctly: If the bank industry's only problem were illiquidity, the new TARP may be just the tonic. It can do a lot to breathe life into the markets for some toxic assets by making market, financing purchases or insuring banks against losses. The bad bank approach may well be worth it.

But the twin problem is insolvency, for lack of better word. Many, and not just the doom-sters, argue that much of the industry will be in a situation where liabilities outstrip their assets. So what's the solution? Hopefully, it isn't a slow creep toward nationalization.

For more:
- here's the article

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