Brave New World

Markets respond well to TARP plan 23/03/2009

Following last week’s dramatic collapse in the USD and uneasiness about poor policy coordination and dismal economic news, the dollar and equities have got off to a strong start this week. Given than there have been plenty of reasons to criticise Treasury Secretary Tim Geithner the market was holding its breath ahead of today’s announcement on the dealing with toxic assets. As part of the plan, the government will match private sector money with treasury funds to buy up to $1 trillion of toxic assets from the balance sheets of failing institutions. So far there has been positive reaction to the plan.