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The purpose of the bailout plan is to purchase illiquid mortgage backed securities (MBS) with the intent to increase the liquidity of the secondary mortgage markets and reduce potential losses encountered by financial institutions owning the securities. The draft proposal of the plan was received favorably by investors in the stock market.
This plan can be described as a risky investment, as opposed to an expense. The MBS within the scope of the purchase program have rights to the cash flows from the underlying mortgages. As such, the initial outflow of government funds to purchase the MBS would be offset by ongoing cash inflows represented by the monthly mortgage payments. Further, the government eventually may be able to sell the assets, though whether at a gain or loss will be known only in future.
I personally feel that the money is being used in the best possible way because we are starting to see some effects. The markets are recovering, economies world wide are starting to recover.
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Will the 700 billion dollars for the bailout come from China?
The bailout did not get through Congress, but no, the money would come from the US taxpayers. Update: The bailout did pass, and the money is coming from the Treasury and Federal Reserve. This could be argued to suggest the money is coming from the taxpayers.
How do you use rice flour as breading?
yes you could it actually gives a better taste
Federal government bailout plans of major corporations are just?
A very good question. Not an easy one to answer. Many legislators voted against the 700 billion bailout on the basis that it was not the purpose of government. President Bush stated that ordinarily, it would be his policy just to let corporations fail than to bailout them out. However, he supported the bailout plan on the basis that to do nothing could put the country in a long term depression. I suggest that those who wish to express their opinion use the "discuss" option, rather than continue to add to this answer.
Should you ask a girl out with sms?
You could, but I wouldn't prefer it. It's better if you actually ask her in person.
Could animals see ghosts?
Yes. and actually it is belived that animals can sense paranormal beings better than humans
In the future are you going to have a better life?
actually yes ,theres going to be better technology,theres even this new car that you could charge it. not gas but electricity.so yes you are going to have a better life in the future.
How do you dry baseball cards?
you could use a hairdryer, or you could rip them up and leave them in the sun (the second option would work better - and if you actually liked them, you could glue them back together :))
Could Naruto Storm be better than Ultimate Ninja 3?
By far. This game actually produces a 3D roaming enviroment. Much better than side scrolling.
Why didn't Refco take Carlos Abadi's bailout?
A breakup fee could have cost them a LOT of money. I agree that's probably the reason why but in hindsight they should have played ball!
Is the great wall of China special the Chinese people?
Maybe if you wrote a better question so people can actually understand you, you could get a serious answer... :)
How will the bailout affect future U.S. economy?
It could be the straw that broke the camel's back as far as national debt is concerned. It is also enabling consolidation of banking on a level that is unhealthy for the economy.
Do you care for this planet and would you do your part to make it better?
I care a lot about this planet. I think we could start by donating to charities that actually know how to help.
