The Team would identify the companies that need help and purchase illiquid securities from them (Mortgage backed securities, Collateralized debt obligations etc)
Buy purchasing these, the FED would be inducing liquidity into the market using which those companies can carry on their business. This would induce a chain reaction and help stabilize the economy.
Much of it is still evolving. Suggest you review wikipedia under bailout plan.
The latest "bailout" is the automotive bailout of the Big Three automakers, Ford, GM, and Chrysler. Legislation was introduced on Dec. 8th.
Directly NO Indirectly YES (Because the people elected by the citizens of USE were the ones who created this bailout plan)
minus the 50 and you got $700 million because the legislature didn't want to go pass it.
They proabably celebrated the fact that the stupid $700billion bailout plan passed.
The bailout process has begun. We have not yet seen the end results of the bailout. We may start seeing them very soon. It is too early to comment on whether it worked or not. We can expect some results in the next one or two quarters.
Four were for the bill, four against. See names at www.petrocenter.com
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
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
The auto bailout process actually started under the Bush administration. Some loans were made at end of Bush term. The auto companies first had to go through congress, a process that was underway BEFORE Obama came into office.