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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.

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16y ago

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