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US unveils $1tn toxic asset plan


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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 reach 7,775 points, while the wider S&P 500 index was up 7.1% or 54 points to trade at 823. Technology shares on the Nasdaq index were up 99 points or 6.8%, at 1,556.

"The actions that we're getting... are very helpful in removing the sand from the gears" of the financial system, said Alan Gayle of Ridgeworth Investments.

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While i agree with your statement irefay there is alot more toxic things around than those politicians.

The banks really have bought this on themselves through silly investments, lending to those without the funds/ plans in place to repay loans and being very narrow minded and thinking there is always going to be growth. Now it is us - the taxpayers - that are being used as pawns trying to fix the mess of the very few. There needs to be serious implications for those responsible for causing such widespread issues.

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While i agree with your statement irefay there is alot more toxic things around than those politicians.

The banks really have bought this on themselves through silly investments, lending to those without the funds/ plans in place to repay loans and being very narrow minded and thinking there is always going to be growth. Now it is us - the taxpayers - that are being used as pawns trying to fix the mess of the very few. There needs to be serious implications for those responsible for causing such widespread issues.

Ahh someone finally said it :P ; People constantly blame the politicians for this mess & while

most of it is their fault, self accountability isnt high on our charts. Fingers get pointed in every direction

when something goes haywire & no one really looks at the situation completely. Prime example:

Citi, a bank in the 'bailout' system paid the New York Mets $400 Million just to have the naming

rights to thier new field. It's the same with all of these golf endorsements & high priced ads that

dug an even deeper hole for these banks, not the politicians completely.

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