July 10, 2009

‘Toxic assets’ weren’t so toxic  07/10/09 12:01 AM

The bundles of bad home mortgages that panicked the Bush and Obama administrations have turned out to be not so toxic for the financial industry after all. After assembling $700 billion to deal with the problem, the government is devoting a relatively modest $30 billion to buy troubled mortgage-backed securities. With that on the back burner, the big threat to the economy is now believed to be troubled credit-card, commercial real estate and commercial industrial debt.

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