[1rudeboy]

I just knew there is more to this story. When even Fleck(enstein) praises Paulson's "fancy footwork," you have to figure that some chips fell where they should.

So, what's the deal? Are we confusing the govenment's initial reaction with what followed?

[Toddsterpatriot]

When even Fleck(enstein) praises Paulson's "fancy footwork," you have to figure that some chips fell where they should.

MTM and the panic on the downside forced firms to mark down their positions when there was little (or no) trading activity. This caused their earnings (and regulatory capital) to fall. When the panic dissipated and marks became more realistic, earnings (and regulatory capital) popped back up, allowing them to pay back the TARP funds some were forced to take. Some took the funds, just in case.

Now the doomers who predicted the money would never be paid back are sad. LOL!