As a precondition for releasing more TARP cash, I'd like to think we can expect Congress to undo Bush's little last minute one-line Xmas present to the top executives of the financial 3-card Monte industry.

But I'm not holding my breath.

They should not let another penny go until we find out where they spent the first $350 billion. No oversight, no more bailing out millionaires to give huge bonuses.

Paulson's informal request is likely to "set off a debate in Congress =Bloomberg
That seems like a safe bet -Steve

I'm not so sure about that. 1) Paulson hasn't shown himself to be an adequate caretaker of the money. 2) Bernanke says the Fed may buy up to $600B in toxic assets, which they don't need congress to approve. 3) Immediate liquidity seems a bit more fluid. Therefore,Congress might be best off just studying the options for a month or more. Have a hearing or two, but not a debate, and certainly not a vote.

In no way should that money be released until after the inaugeration and a new Treasury Secy. is in place. Despite the money that's been given to the banks, credit is STILL frozen. Combine that with no controls on how the banks use the money (bonuses, dividends, mergers/purchase of other banks), and all the secrecy around what the hell they've actually done with the money...NO, no, no! But the tricky part here is: both Houses of the Congress must approve the release of that $350 billion...or it becomes AUTOMATIC after 15 days!! So if it's not approved, they get the money. If it's approved, they get the money. How crazy is that????!!!???

Paul Krugman's article today hits a few nails straight on! The sector of our nation's economy and productive engagement regarding the financial industry is dirty, and broken. It has drained talented members of our society from more noble pursuits as easy money became more available to those among us who learned to gamble with other people's money.

Making rules, (ill-fated at that), up as you go along makes for future castrophes - and we are now at that "future" crossroad with the likes of Paulson and Bush not doing the right thing for our nation, but rather doing the wrong thing so their friends and acquantances in the financial sector don't end up like us broke commoners!

We are witnessing socialism for the rich right here in America! -Kevo

Sorry -- correction. BOTH houses of Congress must block the release of the funds, of it's automatic. Here's the info:

"Under terms of the $700 billion rescue fund that Congress approved on Oct. 3, when the administration determines the second $350 billion is needed it has to submit a report to Congress detailing how it plans to use those funds.

The money automatically will become available unless both houses of Congress pass legislation blocking the funds within 15 days of receiving the administration's report."

http://biz.yahoo.com/ap/081219/paulson_rescue_fund.html

Anyone remember the Tom Cruise character's response to terrorist demands in "Tropic Thunder"? That's kind of how I'm inclined to respond to Paulson at this point.

Dear Uncle Santa,

I need some help too....

I hope the "debate" consists of every single member of Congress telling Paulson to go f@#$ himself.

Don't forget it's not just about allocating money - what about the information on how they spent the last bunch, that Paulson or whomever is evading telling us about? Will the FOIA request come through - or will it have to be pushed the hard way (as it should be.)

How much money do the banks need to hoard, I mean have, before they let some of it go?

This was supposed to be about liquidity and as the Bank of America incident with the window company shows, they aren't going to let it go without a fight.

Paulson to Congress: Give me more money.

Congress to Paulson: In your dreams smuck.

Save it for the next Treasury Secretary. Hank has already proved himself a liar and fool.

If Bush formally requested the remaining $350B today, he'd still have to wait at least until January 3* to get his hands on the money, even if Congress does nothing, because Congress gets 15 days to vote 'no.'

It's hard to see anything that really needs to be done on January 3 that can't wait until January 20.

*And if the 15 days are 15 days that Congress is in session (I'm too lazy to look up the bill and find out for sure), the money wouldn't flow until after the inauguration.

Having mismanaged the money Paulson should not be given the remaining $350 billion dollars. Furthermore the secretive nature in which he has handled our tax dollars leaves a lot of room for suspicion.

While I have no problem with the fact Paulson changed course on how the money was originally intended to be used, but I do have a problem with him not explaining why that was necessary or what it would actually achieve or little else.

I want to know why the bail-out money is needed now. Why we should believe allocating the other half of the money will stimulate the economy considering the next-to-nothing effect it had. Will Paulson do anything differently? How will that revive the economy?

Paulson needs to answer a lot of questions, but I hold little hope the questions will be asked muchless answered. I wonder if Bush threatened to withhold the auto industry's bridge loan to force Congress into handing-over the remaining $350 billion dollars.

With all the unanswered questions, lack of transparency and misleading statements is it any wonder why the public is distrustful and suspicious!

congress needs to tell Paulson "Hell no, I don't think so!"

Paulson just said not even a week ago that he would not request the funds (last of $350 billion)

Now all of a sudden he wants it.

Seems to me, right after the Madoff scandal, that some of the wealthiest have been left penniless he wants the money!!!

IIRC, the President has to formally ask Congress for the authorization, & must wait an additional 15 days if Congress does not authorize. If that is correct, then the President cannot formally request the money until January 6, which is the next date Congress will be in session. W/o Congressional approval, the first day the money is available is January 21.

So what are we all fussin' & fumin' about again? Paulson is just plain out of luck unless Congress again convenes a special session & votes to release the funds.