The recent unveiling of the Treasury's public-private investment program could be yet another way to help boost investors' confidence, according to MEMBERS Capital Advisors.
The PPIP combines $75 billion to $100 billion of the government's existing $700 billion TARP money with money from private investors to buy troubled loans and securities from banks.
"The addition of PPIP to the Treasury's and Fed's previously announced programs underscores the commitment of the administration to work toward the stabilization of the U.S. economy, with particular emphasis on the housing market," said Livia Asher, managing director and portfolio manager at MEMBERS Capital in the March 23 MarketLine alert.
Asher said no one program in and of itself will prove to be the "silver bullet" nor will solutions be immediate. However, "each incrementally adds to the confidence of the market." The stabilization of home prices and restoring of liquidity could lead the market to recover "albeit probably not in straight line fashion."
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