Paulson has announced he is spending an additional $600 billion to buy up toxic mortgages:

The Federal Reserve announced Tuesday that it will purchase up to $600 billion in mortgage-backed assets, the toxic assets that have been weighing down embattled government-sponsored enterprises like Fannie Mae (FNM: News ) and Freddie Mac (FRE: News ).

Buying troubled assets – what a novel idea! Isn’t that what TARP was for? Yes it was, but that moron Paulson decided to do something else. So we have $600 billion on top of the $700 billion approved by Congress. When will the hemorrhaging stop?