Senate Finance Committee chairman Max Bachus says that he does not support nationalizing banks and that taxpayers shouldn’t support a “bad” bank.
Say what you want about ol’ Hank Paulson being schizophrenic, jumping from policy to policy. Congress hammered him for backing away from the bad bank model and going to direct capital injections (as many in Congress wanted. The UK had already begun down that path). Now that Congress has the option of going back to the original TARP model, they balk.
It’s tougher to lead than winge and moan, isn’t it Senator?
Stocks are recouping much of the lost ground from yesterday, helping lift EUR/JPY off the mat and spark a tad of risk taking. Commodities are firm and Treasury yields are higher at the long-end, though you have to pay the Treasury1.5 bp to take your money for a month.