US Encourages Investors To Buy Toxic Assets

By | March 26, 2009

Everything was fine before recession invaded our economy. Banks were working fine, real estate was good, jobs were stable, industries were safe, etc.

But did the thing happen all of a sudden? Were we so reckless about the economy that we waited until it was invaded?

The answer may be yes! Economic downturn in US did not happen in the past sixty years. This generation wasn’t aware of how to respond to recession, its early symptoms, and its impact. Had they known it, I am sure they wouldn’t have let it happen.

Since everything was going very fine, especially, since past two years before the recession, banks were in a mood to try something exciting. The result is the $1 trillion toxic assets that took the entire global economy along with their industry.

Now, the Fed is set to get rid of the cause of the recession. It is encouraging investors to buy these toxic assets; and is aiding it with $75 billion to $100 billion program.

The US share market showed their optimal to the plan by inclining their 12-year low major indexes to 7 percent.