MORNING READ

The Treasury Department’s plan to buy stakes in the country’s largest banks is receiving plaudits from blogging economists. Political bloggers like the plan but worry about its long-term consequences. With John McCain seeking a comeback in the presidential race, conservative bloggers offer different lines of attack the Republican can use on Barack Obama.

Secretary Henry Paulson’s offer of billions to nine large U.S. banks is something they can’t refuse, writes liberal economist Brad DeLong, who has been calling for a similar move for weeks. Members of both parties, including House Financial Services ranking member Spencer Bachus (R-Ala.), had advised Paulson to recapitalize banks earlier, instead of proposing his mortgage-security-purchasing plan, writes Justin Fox, Time’s Curious Capitalist.

Paulson’s old bailout plan was like attacking the crisis by “going through the back door,” while his new plan goes “through the front door,” writes RedState’s blackhedd. While the conservative blogger supports the measure, he insists it must be unwound as soon as the crisis abates. The plan is a step in the right direction, but it doesn’t distinguish solvent banks from shaky ones and it fails to force banks to write-down their bad assets, which would have been good things to do, according to Political Animal’s Hilzoy. With both the United States and Europe stepping up efforts to tackle the crisis, it’s now clear that the next administration will have no choice but to eschew the unilateralism of President Bush, writes The Huffington Post’s Thomas B. Edsall.

McCain has come from behind to win races before, but his backers can’t agree on how he can do it this time, reports the Los Angeles Times. If McCain makes Obama the focus of the race, voters will realize that the Democrat is for a “radical and destructive direction” for the country, according to Townhall’s Michael Medved. McCain at Wednesday’s debate should knock Obama for telling a plumber that he plans to “spread the wealth around,” writes The Corner’s Mark Steyn. Since attacks on Obama’s ties to Weatherman bomber William Ayers didn’t work, McCain should bring back Rev. Jeremiah Wright, someone who was undoubtedly close to Obama, writes The Daily Beast’s Tucker Carlson.

FROM THE BLOGS:
Offers You Can’t Refuse – Brad DeLong
An Early View of the Treasury Plan – J. Fox, Curious Capitalist
Recapitalizing – Matthew Yglesias
Going Through the Front Door – blackhedd, RedState
Bailout 2.0 – Hilzoy, Political Animal
The New Paulson Plan – Kevin Drum
Crisis Likely to Have Profound Consequences – T. Edsall, HuffPo
McCain’s Choice – Mark Steyn, The Corner
Key to Victory – Michael Medved, Townhall.com
Bring Back Rev. Wright – Tucker Carlson, The Daily Beast

OTHER NEWS SOURCES:
U.S. to Buy Stakes in Nation’s Largest Banks – WSJ
Obama Details Plan to Aid Victims of Fiscal Crisis – NY Times
McCain Is Looking For Another Comeback – LA Times
DoJ: E-mails During Stevens Renovations Kept Secret – The Hill