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The aim of the bailout plans, stimulus packages etc are to purchase bad assets, reduce uncertainty regarding the worth of the remaining assets, and restore confidence in the credit markets.
The bail out plan is expected to
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.
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∙ 15y ago
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Define the 700 billion US bailout plan?
Much of it is still evolving. Suggest you review wikipedia under bailout plan.
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.
Whats is the date in which the bailout easing the credit markets would happen?
The aim of the bailout plans, stimulus packages etc are to purchase bad assets, reduce uncertainty regarding the worth of the remaining assets, and restore confidence in the credit markets. The effects of the bailout plan cannot be felt overnight. It would takes months for the effects to be realized. A realistic estimate would be somewhere during the last quarter of the year 2009. We are able to see some effects of the bailout right now with the markets recovering a bit. by this year end, we can see some significant effects.
Do Americans have any vote in this 700 billion bailout?
Directly NO Indirectly YES (Because the people elected by the citizens of USE were the ones who created this bailout plan)
Is the bailout plan a 750 billion plan?
minus the 50 and you got $700 million because the legislature didn't want to go pass it.
What are the special events that happened in Iraq?
They proabably celebrated the fact that the stupid $700billion bailout plan passed.
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
Did any Minnesota congressmen vote for the bailout plan?
Four were for the bill, four against. See names at www.petrocenter.com
How much money would the bailout plan need?
There are 9.4 trillion dollars in sub prime loans. Present plan is to give $700 billion (not million) to wealthy wall street banks as a gift. But this is might take 14 more bailouts to buy all the subprime bad investments. By then, inflation will have taken over the economy, the dollar would be worthless, and gasoline would have tripled. The U.S. House of Representatives has passed the revised version of $700 billion bank bailout plan intended to bolster the ailing U.S. financial system.
Who will receive the bailout money?
Nobody would receive the bailout money directly/Freely. The US Federal Reserve plans at buying illiquid securities from the banks & other financial institutions that are in trouble now. They would be buying assets like MBS (Mortgage Backed Securities), CDO's (Collateralized Debt Obligations) etc The proportion in which each banks assets would be bought by this bailout plan would be decided by the plan coordinators. The proceeds of this asset buying by the reserve (Cash) would be used by these banks and financial institutions to meet their liquidity needs and to infuse further liquidity into the economy. The Fed Reserve would sell these assets at a later point of time once the economy stabilizes and repay the Treasury.
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.
What is the 700 billion bailout 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
