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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
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
I think it is Henry Paulson the US Treasury secretary.
The Reasons for the Bailout Package: 1. To Stabilize the economy 2. Improve Liquidity 3. Improve Investor Confidence 4. Reduce the impact of the financial crisis on the US Economy and GDP.
The Financial Bailout and the Big 3 bailout
If the bailout package is able to successfully revive the US economy then the US government should cut spending on the bailout. But some financial experts feel this 700 billion may not be sufficient. If what they predict becomes true then the government would have to pump in more cash into the bailout package. This bailout cannot be left in midway because the future of the world and US economy lies predominantly on this bailout and people are hoping that this works out successful.
No effect at present. Social security trust funds are not being used in the bailout. Of course, there is an ongoing concern that the funds in social security are insufficient to meet future demands. It would be difficult to be more precise than this, because the government will be buying "troubled assets" that may have value in the future.
Positive Effect - On Banks & Financial institutions who are stuck with loads of bad debt Negative Effect - On the US Treasury and Federal Reserve because they are the ones who is spending this 700 billion
Much of it is still evolving. Suggest you review wikipedia under bailout plan.
The auto bailout initially had an adverse effect on auto sales. Sales picked up when the government released the cash for clunkers program.
That is 900 Billion, The amount of the US Government Bailout package.
Yes. $7 billion
It comes from the US Treasury...
chrysler
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.
i dont no
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