White House Eyes Purchasing Toxic Assets
March 21, 2009 by Stephen Kersey
Filed under Business
In an attempt to get the banking industry to start loaning money to businesses and individuals at a healthy rate, the White House reportedly wants to purchase the toxic assets that are haunting banks across the United States. It’s estimated that there is nearly $1 trillion in toxic assets within the nation’s banking industry.
White House (Image: Flickr)
Most economic experts believe that the road to recovery for the U.S. will begin when banks regain the confidence and the ability to start loaning money. Without a fluid financial world, both businesses and consumers will find it next to impossible to return to the prosperity of a few years ago.
The money used to purchase the toxic assets will reportedly come from the $700 billion bailout available to the federal government. With the public perception of the bailout money souring in recent months, it’s doubtful that the federal government will be able to throw even more money at the problem.
On the stock market, the White House purchasing toxic assets would likely create a spike in the stock prices of many banks and insurance companies.
