Today, the CEOs of the major banks arrived in Washington, D.C. on Amtrak to testify before Congress they are sorry about past malfeasance and really are trying to lend out money to get the economy rolling—which I doubt anyone believed.
Here's the situation: there is $330B in TARP bailout money left, there is about $850B of newly created base money sitting in bank reserves they could fall back on, an unknowable but estimated $2-3T of toxic assets, and a taxpaying public growing more outraged by further bailout money for the financial industry. So, that's nearly $1-2T or so of vaporized wealth that banks somehow need to wiggle out of. And that's just for mortgages.
I had no doubt the original TARP would breeze through Congress. Now, finally, things may be getting interesting.