Global stocks soared again Tuesday after investors cheered the U.S. Treasury's plan to free banks of up to $1 trillion in toxic debt, part of an array of measures designed to jumpstart lending and the economy. Experts tell CNBC the U.S. economy may be close to a bottom.
US Economy Close to Bottom
Ben Lichtenstein, president of tradersaudio.com, says that if gold comes off $900 an ounce, it will signal that money is flowing to other asset classes because risk appetite has improved.
Geithner's Plan Should Work
Geithner's toxic asset plan should work and may even revive an appetite for these toxic assets from the private sector, says David Costa, dean at Robert Kennedy College.
Markets Cheer Geithner's Plan
Tim Adams, managing director at The Lindsey Group says the negative mood in Washington may risk discouraging private money which is key to the success of the government's toxic asset plan.
Do US Banks' Toxic Assets Look Attractive?
The U.S. toxic asset plan will probably be well received by private investors as the economics of the transactions are very attractive, notes Kirk West, MD, Asia at Principal Global Investors.
US Plan Re-establishes Credibility of USD
The U.S. toxic asset plan is bearish for the dollar in the near term but long term, it re-establishes the credibility of the currency, says Adam Carr, senior economist at ICAP.
Implementation is Key to Success of US Plan
The U.S. toxic asset plan alone will not stabilize the financial system, warns Kirby Daley, senior strategist at the Newedge Group. He tells CNBC that clarity and details on the plan are not enough, as it will only help if the implementation works to near perfection.
Changing Role of the Fed
Tim Adams, MD at The Lindsey Group, says both the Fed and the Treasury need to work so closely to address the country's problems it will be hard to define their roles clearly. He also talks to CNBC about the constraints the Treasury faces to get additional funding from Congress.
Positive on Majors in the Near Term
Although Licia Kok, Treasury economist at United Overseas Bank Group thinks the current environment is positive for most of the majors in the near term, things may not look so rosy over the long term.
Bullish on High-Yielding Currencies
Clifford Bennett, chief economist at Kinetic Securities is very bullish on high-yielding currencies like the Aussie and Kiwi.