That’s it. The first $350 bln tranche of the TARP has been exhausted, Paulson says, with the loan to the automakers and Congress will have to release the second $350 bln. That will be a battle royale with Congress as they feel they were “misled”.
Markets are backing and filling this morning after another bout of frantic action overnight. EUR/USD trades at 1.3940 and USD/JPY at 89.50.