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
It is unclear the affect the bailout will have on GDP and unemployment. GDP growth has the biggest impact on employment so how the economy responds to the bailout is the critical factor, If credit markets loosen up and credit begins to flow again it will have a very positive impact on GDP growth. In that instance the impact of the bailout will be a reduction in unemployment.
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.
There is no such crisis as the financial bailout package crisis. the bailout was created to overcome the financial crisis.
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.
Ford did not receive any bailout money.
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.
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.
A bailout is an act of rescue, especially of a financial nature, or a backup supply of air in scuba diving.