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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

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Q: How and when will taxpayers be affected on the bailout?
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