Not Enough TARP To Cover?

Christy Romer, Chair of the President’s Council of Economic Advisors, sat down with CBS’ Bob Schieffer yesterday morning to talk about the stimulus package. What I found most interesting occurs about 1:30 into the interview, where Schieffer asks Romer about the TARP II plan. Treasury Secretary Geithner was to have announced today how the remaining $350 billion of the $700 billion appropriated last year for the financial bailout will be spent. Geithner has delayed this announcement by a day or two, ostensibly because of the sensitivity surrounding the stimulus.


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Schieffer asked a good question – will the $350 billion approved be enough, or will Geithner ask for more? Romer didn’t say, and unfortunately Schieffer didn’t press, but I’m guessing the answer is “no, it's not enough - we need more”.