Timothy Geithner testified before the Congressional Oversight Panel on the TARP program. The exchange between the panel members and the Secretary was tense at times. Yesterday’s stock market losses brought on by the investors’ continued concern about the real health of the banking sector (recent profit statements notwithstanding) seemed to give the questions a potent sense of urgency. Rep. Hensarling (R-TX) pressed Secretary Geithner for an answer on what will determine whether or not the banks will be allowed to repay the TARP funds to the Treasury, former Senator John Sununu followed up with some intense questioning on the same subject. Secretary Geithner said that it’s the overall availability of credit in the economy that will be the utmost concern in determining whether or not individual institutions will be allowed to repay the government funds, and not necessary the financial health of each institution. That said, Geithner gave the “thumbs-up” to the level of capitalization of the U.S. lending institutions, and also noted the signs of thawing credit conditions in the market. As Geithner spoke, the Dow was climbing to its peak of 7,925 so far today. The index has fallen somewhat since the end of the Treasury Secretary’s appearance before the Congressional panel. Geithner gave mixed reviews to the overall effectiveness of the $700 bailout though, saying that the availability of credit is still less than half the level it was this time last year. He also acknowledged that it’s “impossible to judge how banks and the markets would have acted" in the absence of the bailout. There is some criticism of the stimulus out today, as well. This one comes from the business sector, Caterpillar, to be exact. The company issued its quarterly report in which it opined that the infrastructure spending in the stimulus program was too low (Caterpillar, of course, is the maker of heavy-duty construction equipment). The company said that it hopes to benefit more from the Chinese stimulus than from the U.S. stimulus. Not wanting to upset their client, the government of China, is exactly why Caterpillar so vehemently opposed the Buy America provisions in the stimulus. This latest admission of the company’s aspirations confirms and seals it. Lastly, if you’ve wondered how much money went up in flames in the global economic crisis, wonder no more: $4.1 trillion. That is the IMF estimate of the value of holdings that, shall we say, expired, with $2.7 trillion in loans and securities originating in the United States from 2007 to 2010.