Economy and the Currency Market

225934 Resource 128460 120646 120646 1234203981557 1234203981557 Controlled U.S. Government Hopes Private Capital Will Help Fund Bank Rescue

Will investors and funds want toxic assets in their portfolios?

One of the main issues affecting the economy, says the government, is that toxic assets remain on bank balance sheets to poison the outlook for many companies. In addition to floating ideas like a "<a href="item/224202" target="_blank" title="bad bank, bank rescue, economy, toxic assets, investors, U.S. dollar, portfolio">bad bank</a>", government leaders are back to the idea that investors and funds might help finance the bank rescue. <a href="http://www.stockmarketfunding.com/SMF-Blogs/Economic-Analysis/February-2009/U-S--bank-bailout-to-rely-in-part-on-private-money.aspx" target="_blank" title="bad bank, bank rescue, economy, toxic assets, investors, U.S. dollar, portfolio">Stock Market Funding reports on hopes for the bank rescue</a>: <blockquote> Administration officials said the plan, to be announced Tuesday, was likely to depend in part on the willingness of private investors other than banks — like hedge funds, private equity funds and perhaps even insurance companies — to buy the contaminating assets that wiped out the capital of many banks. The officials say they are counting on the profit motive to create a market for those assets. The government would guarantee a floor value, officials say, as a way to overcome investors' reluctance to buy them. </blockquote> It will be interesting to see whether this guaranteed floor value will be enough to overcome concerns about the nature of these toxic assets, and whether private money can help rescue banks -- since <a href="http://www.yieldingwealth.com/economic-stimulus-how-much-has-been-spent-so-far/" target="_blank" title="bad bank, bank rescue, economy, toxic assets, investors, U.S. dollar, portfolio">trillions in public money</a> hasn't done the trick so far. 9 application/xml false bad bank bank rescue captyx-hook._bottom:sociofluid currency market economy forex trading investors portfolio toxic assets U.S. dollar Economy and the Currency Market Learn tips and strategies for forex trading http://www.gftforex.com/land/index.asp?aid=446 Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.6) Gecko/2009011912 Firefox/3.0.6 127.0.0.1 127.0.0.1 mmarquit 66.182.66.2 false true false false true 128460 blog blogsite/GFTForex/web