Enterprising Investor Forum

TARP Explained – Revised Thursday, November 13, 2008

Well, we’d just recently finished our post on the ORNIGINAL TARP (here) and Mr. Paulson decided to shake things up a little!

“Our assessment at this time is that this is not the most effective way to use Tarp funds,” Mr Paulson said.

The new TARP will focus on:

• increasing capital injections in troubled institutions
• increased assistance to the frozen securitization markets
• foreclosure prevention

“I will never apologize for changing an approach or strategy when the facts change,” Mr Paulson said.

All-in-all, it looks like the focus will shift to helping consumers, which is probably a good thing. However, is this the last change under Paulson? Is it going to change again in January? We all know that the markets hate uncertainty…

To be continued.