Be afraid. Be very afraid.

Having pushed the $700 Bln plan to buy up bad assets known as TARP (Troubled Assets Relief Program) through the US House of Representatives with great effort at the second attempt a few weeks ago, I was very confused and alarmed to read today that none of the money will actually be used to buy up any troubled assets. That is right - none of the money will be used to buy up any troubled assets.

Instead, half of the money has already been used to recapitalize banks and other financial companies like AIG, while the plan for what to do with the remaining $350 Bln, which incidentally has not yet been released by Congress, seems to be rather vague.

To quote Bloomberg: "Treasury and Federal Reserve officials are exploring a new ``facility'' to bolster the market for securities backed by assets, Paulson said, adding later that the program would be ``significant in size.'

'Officials are considering using a portion of the bailout money to ``encourage private investors to come back to this troubled market,'' he said.

The Treasury chief said the department is also considering having companies that accept new taxpayer funding get matching private capital. Buying ``illiquid'' mortgage-related assets -- the reason the Troubled Asset Relief Program was established a month ago -- is no longer being considered, he said.

Paulson said he has no regrets for the revised plan. ``I will never apologize for changing a strategy or an approach if the facts change,'' he said at a press conference."

That makes it alright then.

It seems to me that they have run out of ideas -

Sell, Sell, Sell!!!!!!