Will the Obama administration’s new plan help get financial institutions back on their feet?

The world stock markets zoomed ahead yesterday largely on the strength of their reaction to the announcement by the Obama administration of the details of its plan to get the U.S. financial services sector back on its feet.

In short, the plan calls for the federal government to set up a bank to buy so-called toxic assets from financial services institutions that are being weighed down by them, which should then allow the institutions to resume lending at normal levels.

The toxic asset bank is to be capitalized by money from the Troubled Asset Relief Program (TARP) as well as private investors.

Do you think this plan will work and get the U.S. economy started on the right path?