Decisions, decisions. How to spend the next $350bn? Democratic policymakers want to improve the oversight of the troubled asset relief programme and better track how recipients use government funds. They also want at least $40bn of the next tranche to be used to help struggling homeowners stave off foreclosure. With the first slug of money lodged in bank balance sheets, it is time, they argue, to spread aid around.

However well intentioned, helping homeowners is a daunting challenge. Foreclosure figures and the housing market are set to worsen. Resets loom on alt-A and option adjustable-rate mortgages, which could cause borrowers to default at similar rates to the subprime segment. State-level moves to slow foreclosures will have pushed filings from last year into this. Rising unemployment, too, is set to increase delinquency rates.