7:19 AM
Freddy
Government said that they want to help banks to remove their troubled loans and securities. They have two plans, which are plans to buy bad loans and to buy securities from banks. The total purchase of these banks' bad assets are around $ 1 trillion. The goal of these plans are to weighing on banks' balance sheets and increasing banks' ability to provide loans to consumers.
The stock market jumped after this announcement, especially banks and financial firms' stocks.
The increase of existing homes's sale was also increased the stock market..
Let's hope that all of these news will help to lift the U.S. economy and will help banks to give more loans to consumers, because during this period the drop in lending has worsened and prolonged the recession..
Posted in: News
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