A mixed bag, at first glance, from the Israeli elections. It seems that Kadima has won more seats, narrowly, than Likud. Neither party has anything close to a majority, which means that a coalition government will be formed. The only question now is whether it will be led by Kadima's Tzipi Livni (who would become the second female Prime Minister in Israel's history) or by Likud's Benjamin Netanyahu. Avigdor Lieberman's party did very well, and he is expected to be the kingmaker, which bodes well for Netanyahu.

Treasury Secretary Tim Geithner announced the Obama Administration's bank bailout plan, and he is getting panned for the performance by people like Larry Kudlow .

Alan Reynolds is also unhappy with the plan and he explains why it won't work.

The new Treasury plan continues to put most of the emphasis on pushing banks to make more loans to over-indebted consumers, homeowners and firms. Unlike last year, however, Geithner now believes, "Our policies must be designed to mobilize and leverage private capital, not to supplant or discourage private capital. When government investment is necessary, it should be replaced with private capital as soon as possible."

That's a laudable goal - but contradictory. In reality, government capital replaces ("crowds out") private capital, leaving taxpayers holding a bigger and bigger bag. Call that nationalization by default.

Read the whole thing.

Michelle Malkin gets to the heart of the matter...

This massive expansion of government meddling in the housing market will just delay the inevitable. A report released by the Comptroller of the Currency in December showed that more than half of loans modified in the first quarter of 2008 fell 30 days delinquent within six months. And after six months, 35 percent of people were 60 or more days behind on their payments.

Where's the fairness in forcing prudent homeowners and renters to subsidize people who bought overpriced houses and to rescue the banks that lent to them?

Bingo.

As for the bundle of bad loans that are weighing down the banks, those investors who might scoop them up are eying them warily, if at all.

Thomas Friedman adds the issue of protectionism and immigration barriers to the mix of things that could make the situation worse.

Meanwhile, the worsening economy is making for more political instability around the world.