One thing that Tim Geithner made clear in his testimony today is that the Obama administration is planning yet another bailout. He refused to go into details about the “comprehensive rescue” package that is being planned. Most people seem to believe that it would involve creating a massive aggregator bank that would buy up troubled assets from financial institutions.
Of course, this creates another pool of uncertainty as markets try to guess what the regulators will do. So, you know, get ready for some additional volatility.