The Futures are up substantially on the Treasury Plan just announced. The Dow is up 195, the Nasdaq is up 26 and the S&P is higher by 22. Oil climbs past $52 boosted by stronger stock markets and a weaker dollar amid plans by the U.S. government to buy bad assets from banks to contain the financial crisis.
WASHINGTON (AP) — The Obama administration says it hopes a new bank rescue initiative will generate $500 billion in purchasing power to buy up toxic assets and get them off the books of the nation’s banks.
The administration also said Monday that the initial effort could grow to $1 trillion in purchases eventually, as the program proves successful in attacking the bad-books problem that has been at the heart of the worst banking crisis the United States has seen in seven decades.
In a lengthy fact sheet, the administration said it plans to use $75 billion to $100 billion from the government’s existing bailout program and that it expects participation from a broad array of institutions, ranging from pension funds to insurance companies and other long-term investors.
This plan is sheer and utter genius. Please Tell me how did we not see this all along? A massive giveaway of taxpayers dollars so that bankers can continue to enjoy high-status high-maintenance lifestyles, and we can continue to pay them interest for the rest of our pathetic lives.
WOOhoo the bottom is in, the crisis is now over. Now get out there and buy buy buy! (Roll Eyes)
