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Actually speaking yes. It is unavoidable. The financial markets and the economy worldwide is in a big mess because of the mistakes done by us over the years. There are too many illiquid assets stuck with banks which has reduced the liquidity of the markets.

At such situations it is the responsibility of the governments worldwide to ensure that liquidity is infused into the markets and bailout is probably the best way to handle this.

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16y ago

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Related Questions

Did Capital One Bank receive a bailout?

No, Capital One Bank did not receive a bailout during the financial crisis of 2008. Unlike many other financial institutions, Capital One was able to maintain its stability and did not require government assistance. The bank's focus on credit cards and consumer banking helped it navigate the crisis without the need for a bailout.


How much did discover bank received from bailout?

Discover Bank did not receive a bailout during the financial crisis. Unlike many other financial institutions, Discover was able to remain solvent and did not participate in the Troubled Asset Relief Program (TARP) or similar government assistance programs. As a result, the bank operated independently without federal bailout funds.


What is the financial bailout package crisis?

There is no such crisis as the financial bailout package crisis. the bailout was created to overcome the financial crisis.


What were the causes of the Bailout?

Loose lending standards for mortgages (subprime loans) is at the top of the list. See: http://en.wikipedia.org/wiki/Proposed_bailout_of_U.S._financial_system_(2008) or google: subprime loans and bailout deal. If you want to go real deep, try Wikipedia under CDO Debt.


Terms best describes government involvement in the form of financial assistance to crisis-stricken banks and businesses?

Bailout A+


What were the major economic events 2008?

The Financial Bailout and the Big 3 bailout


What does bailout mean?

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.


Will the average people get a check from the bailout?

Typically, bailout packages are designed to provide financial support to businesses, industries, or financial institutions rather than direct payments to individuals. However, some relief measures, such as stimulus checks or direct payments, may be included in broader economic relief efforts to aid average citizens. Whether individuals receive checks depends on the specific provisions of the bailout legislation and the economic conditions at the time. It’s essential to monitor government announcements for details on any direct assistance.


Who needs the 700 billion bailout plan?

1. The banks and financial institutions in US 2. The US Economy 3. The world Economy In short - All of us.


Should the US government cut spending after the 700 billion dollar bail-out goes through?

If the bailout package is able to successfully revive the US economy then the US government should cut spending on the bailout. But some financial experts feel this 700 billion may not be sufficient. If what they predict becomes true then the government would have to pump in more cash into the bailout package. This bailout cannot be left in midway because the future of the world and US economy lies predominantly on this bailout and people are hoping that this works out successful.


Are there any people or organizations that are actually unhappy about the US Government bailout?

Yes; there is a whole bunch of people who are unhappy about the bailout. Their argument is simple: Why must the government spend the taxpayers' money to help clear up the mess made by the financial gurus of Wall Street.


What is a bailout?

A bailout is an act of rescue, especially of a financial nature, or a backup supply of air in scuba diving.