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Is it unavoidable that the US government bail-out the failing financial institutions or is there a better way to handle it?
Deb
Actually speaking yes. It is unavoidable. The financial markets and the economy worldwide is in a big mess because of the mistakes done by us over the years. There are too many illiquid assets stuck with banks which has reduced the liquidity of the markets.
At such situations it is the responsibility of the governments worldwide to ensure that liquidity is infused into the markets and bailout is probably the best way to handle this.
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∙ 15y ago
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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 a bailout?
A bailout is an act of rescue, especially of a financial nature, or a backup supply of air in scuba diving.
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.
What does GM finance arm silent on crucial Govt bailout mean in easier speech?
GM isn't telling whether or not they're getting the bailout from the government yet. They don't want to comment on anything to do with the bailout or their finances.
Which term is defined as monetary assistance by the government to financially threatened corporations?
bailout
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 were the causes of the Bailout?
The 2008 bailout was primarily caused by the subprime mortgage crisis, which led to the collapse of major financial institutions and threatened the stability of the entire financial system. These institutions had significant exposure to risky mortgage-backed securities, and their failure would have had catastrophic effects on the economy. The government intervened to prevent a widespread financial collapse and to stabilize the banking system.
Terms best describes government involvement in the form of financial assistance to crisis-stricken banks and businesses?
Bailout A+
What were the major economic events 2008?
The Financial Bailout and the Big 3 bailout
What does bailout mean?
See: http://en.wikipedia.org/wiki/Bailout Bailout refers to the action of helping out somebody in trouble. You can compare the bailout in financial terms to the bail or parol we get for someone in jail. In bailout, a company with strong financial status offers to help a company that is in dire financial needs. Such a scenario is where the stronger company bails out the weaker one.
Who needs the 700 billion bailout plan?
1. The banks and financial institutions in US 2. The US Economy 3. The world Economy In short - All of us.
Should the US government cut spending after the 700 billion dollar bail-out goes through?
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.
What is a bailout?
A bailout is an act of rescue, especially of a financial nature, or a backup supply of air in scuba diving.
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.
What is allied banking?
Ally Bank was formerly known as GMAC Bank renamed in 2009 amongst all of the criticism of the financial institutions and the federal bailout.
Who does the bailout affect the most?
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
What macroeconomic issue have been in the news lately?
1. The talk of raising the minimum wage. 2. The corporate bailout by the Federal Government. 3. The development of a Consumer Financial Protection Agency.
