US unveils $1tn toxic asset plan
What are peoples opinions? Is this going to help in the long-term? Most worries so far I've heard that this might rally the stocks for perhaps a week or two, but with everything still being unsure in the markets that it's not going to show beyond that. Any chance that this will have a long-term effect?The US has announced details of a plan to buy up to $1 trillion (£686bn) worth of toxic assets to help repair banks' balance sheets.
The "Public-Private Investment Programme" will purchase the troubled mortgages and securities that have been at the root of the credit crunch.
The Treasury has committed $75bn to $100bn to the programme and said the private sector would also contribute.
On Wall Street key share indexes soared by up to 7% on the news.
The widely followed Dow Jones index gained nearly 500 points or 6.8% to close at 7,775 points, while the wider S&P 500 index was up 7.1% or 54 points to reach 823. Technology shares on the Nasdaq index ended the day up 99 points or 6.8%, at 1,556.