But private economists said investors may still have doubts about whether the government has adequate resources to properly fund the plan and whether private investors will be attracted to participate, especially after last week's uproar concerning the AIG bonuses, which has added to the anti-Wall Street feelings in the country.
Romer said the new toxic asset program would utilize around $100 billion from the $700 billion bailout fund, leaving the fund close to being tapped out.
I am wondering what price timmy-boy will offer to the banks. I am sure they will fight a long long time to get the right price and then why should the banks fly. Because if they sell the toxic assets they have to do another writedowns, if the m2m is here or not, because then the deficit is realized and they never can make this assets to money. UBS sold their toxic assets to the swiss government too, about 3 month ago and this stock did not rally at all. To buy the toxic assets is one step before nationalization.
This is the final big bullet left in the chamber. The M2M, Uptick Rule and banks talking about turning a profit really popped up the financials on all that news along with oversold conditions. If this plan is well received (toxic assets) then FAZ gets crushed but if not you will see Dow 6500 - 6000 coming very soon and probably 5000's later in the year.