The US government has unveiled details of a toxic assets rescue plan. Billions of federal dollars will be injected to thaw the nation's frozen credit markets, and ease the economy out of recession.
President Barack Obama said his economic team was confident the rescue plan would work. But he added there is still a long way to go.
He also said the initial effort could grow to one trillion dollars, as the programme proves successful in attacking the problem that has stifled bank lending to consumers and business, compounding the worsening global downturn.
Obama said, "But do so in a way that doesn't just obligate taxpayers to buy at whatever price they're willing to sell these assets, instead involves a public-private partnership that allows market participants who have every interest in making a profit to accurately price these assets so that the taxpayers share in the upside, as well as the downside."
75 billion to 100 billion dollars of the rescue plan's capital will come from the financial bailout package, which was known as the Troubled Assets Relief Program. Funds will also come from private investors.
The banking plan will use low-interest loans to entice private sector investors to initially buy about 500 billion dollars in toxic assets, taking them off the books of the nations' banks.
Private sources are expected to range from pension funds to insurance companies and other long-term investors.
(CCTV March 24, 2009)
