Tuesday Market Mover: TARP 2…Son of TARP!!!!!

Just when you thought it was safe to go back in the markets…

T-T-T-TARRRRP!!!!

Geithner to announce details of the Administration’s plans for the second tranche of TARP funds- 350 billion, and how they will be  utilized to address the financial system and housing…we hear, see MM, a last minute addition to the Senate stimulus bill contains a provision giving an additional 50b to Treasury for MoMods, so  that plus 50b from tarp tranche 2 would get them to the previously floated 100b for housing figure, I have my fingers crossed

MiM will cover it LIVE

Fox:

TARP-2, as it is called, is the second installment of the Trouble Assets Relief Program passed by Congress in October. That legislation aimed to pass out cash to get the credit markets — frozen from bad housing debts — moving again.

But after the first $350 billion was doled out with virtually no oversight, the Obama administration said it is going to make sure rules are in place to keep the banks from wasting the government credit.

If it works, it should get credit moving again so people can buy homes and cars and start using credit cards. But if it doesn’t, it means taxpayers could be stuck with billions of losses on failed loans.

TARP 2 also plans to put $100 billion into helping homeowners facing foreclosure and it is likely to contain a means to “rope off” toxic assets from other, more stable loans using a delicate balance between taxpayer and private funds.

ON “FOX News Sunday,” National Economic Council Chairman Larry Summers said the goal is for the government to offer incentives to the private sector to make it more appealing to buy bad debt.

-snip-

This may not be the last of the government bailouts, however. Mark Zandi, chief economist at Moodyseconomy.com, said he thinks the White House will need to ask for another $350 billion down the road.

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February 9, 2009. Tags: , , , , . Cabinet, CITI, citigroup, Economy, FDIC, Film, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Unemployment Statistics, Wall St. 3 comments.

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