23 March 2009

Treasury Announces $1 Trillion Plan to Buy Banks' Bad Debt

Finally, the Obama administration unveiled its long-awaited plan to remove toxic assets from the books of the nation's banks.

And the next question would be: Does this works?

The $1 Trillion announced was not a small amount. If this measure failed, then, the whole of US sure would go into deep trouble (although now US is boiling the water over 100 Celsius).

This is because, US largest creditor - China - would be more concerned about their investment in US treasuries of over a trillions. China had voiced out their concerned lately. And, US re-assured to the world regarding their sound economic conditions. Then, USD had started to weaken against major currencies in the world.

I would rather asked: How safe was my investment in US treasuries?
If i get back my money with much less value, there is no point investing my money there !!!

Anyway, one thing is for sure. This $1 Trillion plan to remove toxic assets from banking system is the way forward to rescue banks from further write-downs.