by Laura Conaway

Simon Johnson, Planet Money pal and Baseline Scenario blogger, has just published an Atlantic Monthly article titled "The Quiet Coup," his take on what the IMF would say to the U.S. if it could. Johnson, a former chief economist at the IMF, writes:

In a financial panic, the government must respond with both speed and overwhelming force. The root problem is uncertainty—in our case, uncertainty about whether the major banks have sufficient assets to cover their liabilities. Half measures combined with wishful thinking and a wait-and-see attitude cannot overcome this uncertainty. And the longer the response takes, the longer the uncertainty will stymie the flow of credit, sap consumer confidence, and cripple the economy—ultimately making the problem much harder to solve. Yet the principal characteristics of the government's response to the financial crisis have been delay, lack of transparency, and an unwillingness to upset the financial sector.

Bonus: Joe Nocera says the Geithner plan makes sense.