We estimate climate sensitivity from observations, using the deseasonalized fluctuations in sea surface temperatures (SSTs) and the concurrent fluctuations in the top-of-atmosphere (TOA) outgoing radiation from the ERBE (1985-1999) and CERES (2000-2008) satellite instruments. Distinct periods of warming and cooling in the SSTs were used to evaluate feedbacks. An earlier study (Lindzen and Choi, 2009) was subject to significant criticisms. The present paper is an expansion of the earlier paper where the various criticisms are taken into account. The present analysis accounts for the 72 day precession period for the ERBE satellite in a more appropriate manner than in the earlier paper. We develop a method to distinguish noise in the outgoing radiation as well as radiation changes that are forcing SST changes from those radiation changes that constitute feedbacks to changes in SST. We demonstrate that our new method does moderately well in distinguishing positive from negative feedbacks and in quantifying negative feedbacks. In contrast, we show that simple regression methods used by several existing papers generally exaggerate positive feedbacks and even show positive feedbacks when actual feedbacks are negative. We argue that feedbacks are largely concentrated in the tropics, and the tropical feedbacks can be adjusted to account for their impact on the globe as a whole. Indeed, we show that including all CERES data (not just from the tropics) leads to results similar to what are obtained for the tropics alone — though with more noise. We again find that the outgoing radiation resulting from SST fluctuations exceeds the zerofeedback response thus implying negative feedback. In contrast to this, the calculated TOA outgoing radiation fluxes from 11 atmospheric models forced by the observed SST are less than the zerofeedback response, consistent with the positive feedbacks that characterize these models. The results imply that the models are exaggerating climate sensitivity.