I'm not sure that Paulson's current plans are any better, but remember when we were told that we should buy up the financial industry's garbage, and could (or, in the mind of some people, inevitably would) even turn a profit after a few years? If you believed it then what do you make of the collapse of Citigroup's stock? The WSJ has an explanation:
Weighing down the shares has been the Treasury Department’s decision last week not to buy troubled assets from banks. Citigroup’s balance sheet includes battered securities and loans that many investors hoped could be offloaded to the government.Go figure.