Geithner's new solution for the financial crisis...?

  • Thread starter Thread starter nolde05
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nolde05

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In the beginning of this week the government proposed the Private-Public Investment Plan that would potentially unfreeze credit markets by purchasing prominent banks toxic assets, or newly named "legacy assets". It will purchase legacy loans and legacy securities, both backed by real estate assets.

When the private investors and government purchase these toxic assets, what happens next? How are these establishments going to possibly profit from them? What will drive their price up or down?

I am sure it's as simply as supply and demand, but how do these markets work?

Thank you in advance!
Brandon
 
the government needs to keep its hands off of companies. it ruins everything it touches. lets go back to the good, old REAGANOMICS.
 
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