On Monday, the financial world was largely focused on the Obama administration’s bank rescue plan, under which the government would offer subsidies to private investors who buy up trouble assets from banks, and taxpayers would share in any gains — or losses.
The president says he is “very confident” the plan would help to ease credit. The plan was greeted with enthusiasm on Wall Street, where the Dow and Nasdaq were up sharply, and major markets made big gains in Asia and Europe.
Peter Coy, economics editor of BusinessWeek magazine, joins Martin Savidge to discuss world stock markets, how Western European banks will be impacted by the plan and foreign banks being bailed out by U.S. taxpayers.
