A bailout is a government-funded cash infusion to a failing business. The most famous is now the bailout of AIG. A market bailout is a government0funded cash infusion to an entire market or market sector. The most recent has been the financial sector. It's when the rich and powerful screw up and they want the people to pay for their loss.
Another answer is when the politicians know the country is deep in debt and so they give some money to the small businesses to pay their debts. Its also sort of like the stimulus checks they sent out to help people.
There is no such crisis as the financial bailout package crisis. the bailout was created to overcome the financial crisis.
The FTSE index is the index of stock trade in the London market. You can check it on Yahoo, Moneycentral, Bloomberg, etc. Per Monday morning, Oct 6, it sure doesn't look like any European or the Asian markets reacted positively to the passage of the bailout. I can't see how the bailout can be considered anything but a positive for the market- but what do I know! The billions of Fed dollars doesn't immediately flow into the system. Just reading the headlines today, it appears our credit crunch is spreading globally. In the long term, will the bailout work for the US and the rest of the world? Sure wish I had an answer.
Because our free market has failed, our republic has failed, and the will of the people is ignored by a corrupt government.
205 for it and 228 against it.
The Financial Bailout and the Big 3 bailout
The latest "bailout" is the automotive bailout of the Big Three automakers, Ford, GM, and Chrysler. Legislation was introduced on Dec. 8th.
The US Senate. The bailout plan is intended to help the struggling financial institutions of the US and provide them with cash (in return for the illiquid assets they have which they cannot sell in the open market) which can be used to revive the fallen economy. At a later point of time the US Fed reserve may sell these assets back to these banks and recover a part or the full bailout money.
Ford did not receive any bailout money.
Specifically speaking, nobody asked for a bailout. Out of the options that were considered to revive the economy this bailout was considered the most effective way and hence it came into existence.
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.
The Citi group bailout was agreed for $45Billion same as the Bank of America bailout. The numbers about who got what and how they are spending it are pretty much a secret.
Ford was one of the very few automakers who did not take any bailout money from the government, thus the bailout has not affected their pricing.