Program Note: For more from Ali Velshi on Geithner's plan, tune in tonight for AC360° at 10 p.m. ET.
CNN Chief Business Correspondent
...Timothy Geithner shows his hand. Coming out with MOST of the rest of the banking plan (final details will come at the end of April, when the results of the "stress tests" on the bank come in).
So far Wall St. likes the deal, putting the Dow above 7,500 before noon. The plan basically allows private companies to partner with the government to buy some of these so-called "toxic assets" at a good price, with government backing.
It's sort of like the government telling you it'll set aside the best, undiscovered antiques at every garage sale – the stuff that's taking up space for homeowners but the experts know are hidden gems, once they get cleaned-up and displayed properly. Not only that, but the government will come up with half the money if you want it (although when you polish-up and sell the antique, you split the winnings with the government). And if you don't have enough money to take part in this plan, the government will lend it to you.
It might look as if the government's giving up the ranch but, fact is, no one really knows how much the ratty old dresser is worth until someone actually buys it, and that could take time. Same thing with these toxic assets – they'll be worth something but the government needs to provide some incentive to get investors to buy them from the banks, so the banks can use the money to lend it to consumers and businesses.
Oh, by the way, there was a surge in the sales of existing (used) homes (as opposed to "newly-built" homes) and the market seemed to like that, too.
Anderson Cooper goes beyond the headlines to tell stories from many points of view, so you can make up your own mind about the news. Tune in weeknights at 8 and 10 ET on CNN.
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