Call it TARP Part Deux. Today, Congress authorized the release of the second $350 billion intended to prop up the American credit markets.
While some hoped to thwart the release of monies for the controversial plan, the Democratic Leadership succeeded in rustling up the necessary votes, buoyed by President-elect Barack Obamaâ€™s explicit request for quick approval. Also helping was Obamaâ€™s pledge to use $100 billion for struggling homeowners.
The money will be available in two weeks, which means the new administration will be in charge of its distribution. We can only hope Obamaâ€™s team will be less carefree in how the money is spent. I, for one, donâ€™t want to hear in a month that weâ€™re unsure how the money is being spent and have no good system to measure its impact.