0
1. Bailout is a mechanism to strengthen banks' balance sheet so that their credit rating will not deteriorate thus not requiring to pledge additional asset to creditors.
2. It is also a mechanism to safeguard banks from panic withdrawal from depositors.
Bailout comes at a cost (a very huge cost), in dollar term, it was estimated that the whole bailout plan will cost every man, woman and children in the US $2,300.
For more information, visit:
http://leonardatavism.blogspot.com/2008/09/some-thoughts-for-us-bailout-plan.html for
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
What date was the 700 billion bailout passed?
The bailout was passed by the House of Representatives and signed into law by the president on Friday October 3, 2008.
How did the House of Representatives vote on the 2008 bailout bill?
They all sat down together and talked about it.
How did they vote on the bailout plan?
They voted on the bailout plan just like any bill passed by the government. When the Bill was initially introduced, it had been rejected by the US Senate on Sep 29th 2008. It was then amended and approved by the US Senate on Oct 3rd 2008. President Bush signed the bill into law within hours of its enactment, creating a $700 billion Troubled Assets Relief Program to purchase failing bank assets.. Without majority in the house the bailout would not have come into existence
What is meant by the power of the pursue when speaking of the House of Representative?
Buying votes with the taxpayers money.
What is the connection between the huge bailout in the US and the upcoming elections for a new US president?
Actually there is no correlation between the bailout plans and the US elections. The plans were initiated by president George Bush to help the economy to recover from the crisis. Though he wasnt in the race for the president post, he initiated it and hence there is no basic connection between the two.
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.
What are the release dates for Fox Business - 2007 Taxpayers Still on the Hook for GM Bailout?
Fox Business - 2007 Taxpayers Still on the Hook for GM Bailout was released on: USA: 25 July 2013
Has Ford changed the price of its vehicles since the automaker bailout?
Ford was one of the very few automakers who did not take any bailout money from the government, thus the bailout has not affected their pricing.
Are there any people or organizations that are actually unhappy about the US Government bailout?
Yes; there is a whole bunch of people who are unhappy about the bailout. Their argument is simple: Why must the government spend the taxpayers' money to help clear up the mess made by the financial gurus of Wall Street.
How were new vehicle sales in the nation affected by the bailout of automakers?
The auto bailout initially had an adverse effect on auto sales. Sales picked up when the government released the cash for clunkers program.
What will the 700 billion dollar bailout solve?
It will solve the economic crisis that has affected the US and the whole world
What is a big bailout?
A system of promotion, stimulation and protection of the organised usury, money changing and financial gambling of any kind by means of transferring all the risks to the borrowers and the taxpayers on the grounds of the inability of the latter to understand what is really going on.
What is the financial bailout package crisis?
There is no such crisis as the financial bailout package crisis. the bailout was created to overcome the financial crisis.
What is the latest bailout plan?
The latest "bailout" is the automotive bailout of the Big Three automakers, Ford, GM, and Chrysler. Legislation was introduced on Dec. 8th.
How many votes yes for bailout and how many no for bailout?
205 for it and 228 against it.
What were the major economic events 2008?
The Financial Bailout and the Big 3 bailout
How much bailout money did FORD receive?
Ford did not receive any bailout money.
