Which Way Is Up?

It appears that the US Congress is beginning to ask themselves once again why they voted for a hastily arranged piece of legislation.  In testimony yesterday to the US House Financial Services Committee, Treasury Secretary Paulson had a rough time explaining why he used his $350 billion "allowance" in a way that differed from the original expectations.  Here is what Rep. Spencer Bachus of Alabama, the panel's top Republican, had to say:

"Changing too quickly, without adequately explaining why you've changed or what you're going to do next, risks sending mixed signals to a marketplace that is in dire need of certainty and a sense of direction."

In addition, American Bankers Association Chairman and CEO Edward Yingling said during the hearing,

"...it (TARP) is also a source of great frustration and uncertainty to banks. Much of the frustration and uncertainty is because of the significant and numerous changes to the program and misperceptions that have resulted on the part of the press and the public."

The continued changes to the application of the rescue packages are leaving both Congress and our financial markets asking themselves the same question - "Which way is up?"  It seems no one knows the answer.