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Whether the government should have bailed out Morgan Stanley depends on the potential consequences of its collapse. A bailout could have prevented a systemic financial crisis, protecting the broader economy and preserving jobs. However, it also raises concerns about moral hazard, where firms may take excessive risks if they believe they will be rescued. Ultimately, the decision would need to balance immediate economic stability with long-term accountability in the financial system.

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2w ago

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Which of the major banks were bailed out by the federal government?

AIG was the main bank that was bailed out by the government. It is outrageous that we pay taxes for multi billion dollar corporations to be bailed out. The government did not bail them out, we did. It is our hard earned money going to work I guess.


Why are people still required to pay their debts to credit companies who were essentially bailed out by the government?

Well, if you have to pay a debt to a company, and a representant of the company has the papers necessary to prove that you have the debt, but the company is bailed out by the government, you still have to pay. Some companies are bailed out because they have no more money, because they gave the money to other people and then expect them back. Not paying can be called fraud, and some people have been jailed for profitting on these companies. The criminals saw in Econimic sites that the company`s funds are almost 0, then take a loan, the company is bailed out and the man goes with the money. Of course, the government doesn`t want this, so if you have a debt even to a long-time dissapeared company, you still have to pay it. So choose wisely when you have a debt, or you`ll have to give back money to people that died long-ago.


What was the AIG scandal?

AIG is an insurance agency that fell victim to the housing market collapse. The company was considered "too big to fail" and bailed out by the US government. The scandal related to the underhanded tactics and fraud perpetrated by AIG executives.


What does bailout money mean?

That means the amount of money you need to pay to get bailed out.


How do bad credit home loans affect the USA?

Bad credit home loans often lead to the mortgage holders defaulting on their payments. When too many people do this, the banks get in financial trouble and either fail or need bailed out by the government.

Related Questions

Which of the major banks were bailed out by the federal government?

AIG was the main bank that was bailed out by the government. It is outrageous that we pay taxes for multi billion dollar corporations to be bailed out. The government did not bail them out, we did. It is our hard earned money going to work I guess.


Was ford motor company bailed out by the government?

No, they received no government loans and the did not take bankruptcy.


How rich was JP Morgan?

Rich enough to have bailed out the U.S. government twice. The amount of money he had is unknown because most of his money was invested and was in shares of companies. He is probably the richest man to live in the modern world.


Who was the first automobile company bailout by the government?

chrysler was bailed out in the 80's.


How many times has AIG been bailed out?

The government wants to intervene again for AIG's bailout... if they do so, it will be the 4th time the government has bailed out AIG. I hope their stock goes back up... as of 3/5 the stock is only 35 cents!!!!! That's sad!


When was Bailed Up created?

Bailed Up was created in 1895.


How do find out who bailed out someone out of jail?

The fact that someone IS bailed out is a public record. The information as to who bailed them out usually is NOT.


Who bailed Chris Brown out of jail?

Chris bailed himself out of jailllll!!!!!


Who bailed out Triple H?

Stephanie McMahon bailed out triple h


Who bailed Rosa park out of jail?

She was bailed out by Edgar Nixon and Clifford and Virginia Durr.


Has the government given a bail out for Chrysler to get out of debt?

The government bailed out all major American car companies except for Ford. Chrysler and GMC both got significant bailouts.


Automobile company helped financially by the federal government?

Chrysler and General Motors were both bailed out by the United States and Canadian governments.