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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 is the bailout plan?
The initial bailout plan was for nearly $700 billion. The latest stimulus package is another $250 billion 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. Below are some reasons for such packages: 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.
Where is the 700 billion where did it go specifically?
The purpose of the bailout was to purchase bad assets, reduce uncertainty regarding the worth of the remaining assets, and restore confidence in the credit markets. The federal reserve is buying illiquid assets from large banks & financial institutions.
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.
How much has been spent on the bailouts?
The initial bailout plan was for nearly $700 billion. The latest stimulus package is another $250 billion 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. Below are some reasons for such packages: 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.
How big is the stimulus package?
The initial bailout plan was for nearly $700 billion. The latest stimulus package is another $250 billion 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. Below are some reasons for such packages: 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.
What is the essence of the 700 Billion bail-out plan?
Banks and financial institutions in the US are stuck with a lot of bad debt (Illiquid assets that cant be sold in the open market) This bailout intends on buying such assets from these distressed financial institutions to infuse liquidity into the economy. This money is expected to bring in the much needed cash into the economic system which would revive the economy. Once the economy becomes stable, the government would sell these assets and take back their 700 billion dollars.
How much money has George Bush said the wall street bail out plan will be?
The initial bailout plan was for nearly $700 billion. The latest stimulus package is another $250 billion 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. Below are some reasons for such packages: 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.
What was the voting out-come of the 700 billion bail out in congress?
The Emergency Economic Stabilization Act of 2008 commonly referred to as a bailout of the U.S. financial system, is a law authorizing the United States Secretary of the Treasury to spend up to US$700 billion to purchase distressed assets, especially mortgage-backed securities, from the nation's banks. The Act was proposed by U.S. President George W. Bush and Treasury Secretary Henry Paulson during the global financial crisis of September-October 2008. The purpose of the plan was to purchase bad assets, reduce uncertainty regarding the worth of the remaining assets, and restore confidence in the credit markets. 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..
What the US bank-bailout is designed for?
The Emergency Economic Stabilization Act of 2008 commonly referred to as a bailout of the U.S. financial system, is a law authorizing the United States Secretary of the Treasury to spend up to US$700 billion to purchase distressed assets, especially mortgage-backed securities, from the nation's banks. The Act was proposed by U.S. President George W. Bush and Treasury Secretary Henry Paulson during the global financial crisis of September-October 2008.The purpose of the plan was to purchase bad assets, reduce uncertainty regarding the worth of the remaining assets, and restore confidence in the credit markets.The Reasons for the Bailout Package:1. To Stabilize the economy2. Improve Liquidity3. Improve Investor Confidence4. Reduce the impact of the financial crisis on the US Economy and GDP.
Why did the government bailout?
The Emergency Economic Stabilization Act of 2008 commonly referred to as a bailout of the U.S. financial system, is a law authorizing the United States Secretary of the Treasury to spend up to US$700 billion to purchase distressed assets, especially mortgage-backed securities, from the nation's banks. The Act was proposed by U.S. President George W. Bush and Treasury Secretary Henry Paulson during the global financial crisis of September-October 2008.The purpose of the plan was to purchase bad assets, reduce uncertainty regarding the worth of the remaining assets, and restore confidence in the credit markets.The Reasons for the Bailout Package:1. To Stabilize the economy2. Improve Liquidity3. Improve Investor Confidence4. Reduce the impact of the financial crisis on the US Economy and GDP.
Is bill gates a bad man?
Yes, he is. He's donated 28 Billion Dollars already. He's also the second richest man in the world.
