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2008 Federal Bailout

The 2008 Federal Bailout refers to the Emergency Economic Stabilization Act of 2008 which provided financial assistance of up to $700 billion through the purchase of troubled assets and capital injections in banks, to address the financial crisis.

1,551 Questions
Financial Statements
Companies
2008 Federal Bailout

What is p v ratio?

The Profit Volume (PV) Ratio is the ratio of Contribution over Sales. It measures the Profitability of the firm and is one of the important ratios for computing profitabilty. The Contribution is the extra amount of sales over variable cost. Contribution is also Fixed cost plus profit.

Profit = Sales - Variable Cost - Fixed Cost.

Thus Contribution is:

Profit + Fixed Cost = Sales - Variable Cost.

Therefore PV Ratio = (Contribution/Sales)X100. (This as a percentage of sales)

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2008 Federal Bailout

How much money was given for auto bailout?

24 billion for the big three

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Economics
2008 Federal Bailout
2008 Economic Crisis
2009 Economic Stimulus Plan

Scope and importance of managerial economics?

Managerial Economics is often interchangeable with Business Economics, though there is some difference between these two terms:

i) Business Economics - means Economics necessary to be understood for running any business.

ii) Managerial Economics - lays more emphasis on the managerial functions in any business firm. Managerial functions are decision making and forward planning.

DEAN, author of the first managerial economics text books defines managerial economics as "the use of economic analysis in the formulation of business policies"

Out of two major managerial functions served by the subject matter under managerial economics are decision making and forward planning:

Lets explore the scope for decision making:

1. Decision relating to demand.

2. Decision related to Cost and production.

3. Decision relating to price and market.

4. Decision relating to profit management.

5. Macro economic factor.

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Economics
Pakistan
2008 Federal Bailout

How many black money in Pakistan?

150$ billion black money in Pakistan

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2008 Federal Bailout

What does bail out mean in business?

To bail is to discard water to keep a boat from sinking. Similarly, to bail out someone or a business is generally to keep them from financial ruin. One can partially bail out someone, as to assist them from financial ruin.

636465
Math and Arithmetic
Algebra
2008 Federal Bailout

What is 225 divided by 4?

56.25 <(-_-)> I'm Yoda!!!

123
2008 Federal Bailout
Inflation

Difference between demand and supply and what causes each?

The words are just what they say. Demand is how much desire consumers have for a product or service. Supply is how much of a product or service is available. When demand is great and supply is low the price of a product or service increases. When demand is low and supply is great, the price of a product or service decreases. The effect on price is the quantification of supply and demand. Demand in many instances is driven by disposable income and free time. Henry Ford recognized this in increasing the wages of his workers and decreasing their work time. See the related link below.

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India Colleges and Universities
2008 Federal Bailout
2009 Economic Stimulus Plan
Bachelor of Commerce (BCom)

Fy bcom time table?

YES TIME-TABLE including seat number

with the help of prn number

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2008 Federal Bailout
2008 Economic Crisis
Inflation

Features of duopoly?

· Two firms in the industry

· Strong control over price.

· Uses Non price competition to compete

· Very strong Barriers to entry

Note. a pure dupoly very rarly occurs in real life the more common is two dominate firms who hold majority of the market share.

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Math and Arithmetic
Statistics
2008 Federal Bailout

What is 850 billion divided by 130 million?

850000000000 / 130000000 = 6,538.46154

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2008 Federal Bailout
2008 Economic Crisis
2009 Economic Stimulus Plan

Too Big to Fail - is this an official government policy and where can it be found in writing?

It is not official policy. It refers to the idea that should a large corporation or entity cease to exist, the fallout from its collapse would cause disastrous consequences for the economy as a whole. For instance, should GM cease to exist, thousands of workers would be without jobs.

A Different perspective: "Too big to fail" has been a "semi-official" policy with in governmental agencies, especially that of the Federal Reserve, that has deemed large financial institutions and large corporations too "interconnected" to the market place to fail. However, this semi-official policy, which is to say not really a policy but an unwritten rule tolerated by the people, is not a procedure by which any administrative agency steps in on behalf of large financial institutions or corporations and stops them from failing but rather watches silently as they fail and then bails them out financially with tax dollars. This unwritten policy creates perverse incentives for these institutions that are "too interconnected" to accept any unnecessary risks they otherwise would not take on. What risk is there when failure only means the hard earned money of individuals payed towards taxes is used to finance the failures of these unnecessary risks?

If we as the United States are to maintain "free market" principles and adhere to, at the very least, a modicum of capitalist principles then "too big to fail" is just too big to tolerate! There are, in the United States, antitrust laws in place, presumably to prevent institutions from becoming to big to begin with. The antitrust laws were created to foster competition which benefits both buyers and sellers by ensuring lower prices and a better quality of product. There are three major antitrust laws that stand today as official policy as they are the law. The first is the Sherman Act which outlaws all contracts, conspiracies and and any other combination thereof that would impede or unreasonably restrain interstate trade. The second is the Clayton Act which prohibits mergers or acquisitions that are apt to diminish competition and the third antitrust law is Federal Trade Commission Act that prohibits unfair methods of competition in interstate commerce.

There are three primary ways in which these antitrust laws are supposed to be enforced. The first is by criminal and civil enforcement brought about by the antitrust division of the Department of Justice, the second is by civil enforcement actions brought by the Federal Trade Commission and the third, being most reliable form of government, lawsuits brought forth by private individuals. That these antitrust laws stand as law only demonstrates the problem we the people face when a government official ignores those laws in favor of a "semi-official" policy of "too big to fail". There is also the matter of equal protection under the law and if there are institutions too big to fail then necessarily there must be businesses too small to fail which would mean every one that fails would be entitled to tax dollars to pay for their failures which would then place that corporation known as the United States of America as the only true institution that is "too big to fail".

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Investing and Financial Markets
Stock Market
Investment Theory
2008 Federal Bailout

What time does the Stock Market open?

The stock market opens at 9:00 am and closes at around 4:00pm.

131415
Economics
2008 Federal Bailout

How will the federal bailout affect the deficit?

From the NY Times:

According to the White House, the 2008 federal deficit is projected to be $410 billion, or about 3 percent of gross domestic product. While deficits are rarely positive, this level is within the ranges maintained over the last several decades. However, if the Treasury's $700 billion plan is fully utilized, it would drive the federal deficit to more than 6 percent, in excess of the last high seen in 1983. The fiscal burden of a deficit of this size creates a considerable barrier to economic growth over the longer term.

http://campaignstops.blogs.nytimes.com/2008/09/23/what-the-proposed-bailout-means-for-the-deficit/

As it turns out, the TARP program (as of June 2010) is making money for the treasury and is REDUCING the deficit.

The NY Times article is not correct.

This is all aload of crap seriously.wtf just because i love cagdas so much, u kno wat yh i wish i cud jus talk to cagdas at least just say hi once i wud be so happu. It is unclear right now how the bailout will affect the federal deficit. Unlike general spending which have an immediate and direct effect on the deficit, this is a purchase of assets and not an expenditure. The initial way that its effect will be estimated by the Congressional Budget Office will be based upon an estimate of how much the government will profit or lose once the assets either are sold or mature. Many people believe that if this is done properly, this will reduce the deficit and the national debt because the government will make money when everything is wound up. It is entirely possible that we "the taxpayers" could make hundreds of billions of dollars on this "bailout".

Everything depends on how the program is structured, how the assets are acquired and how the economy performs over the next decade.

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Investing and Financial Markets
Learning Theories
Colleges and Universities
2008 Federal Bailout

Scope of working capital management?

bole to chalu pesa

181920
2008 Federal Bailout

What city has the highest average of high buildings?

New York City has the highest buildings. And of course America is home to sky scrapers.

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Economics
2008 Federal Bailout
2008 Economic Crisis

What is meant by the term global economic crisis?

The term 'global economic crisis' refers to the current period of global recession from a period of very fast growth, brought on by poorly controlled economic conditions.

Although it was present in many of European countries, the main cause is said to be irresponsible 'sub-prime' lending by banks and financial institutions in the USA, as it was made viable economically if lenders did not realistically expect a return.

As a result, the crisis deepens as confidence in all markets drops, causing a chain reaction that started in the finance sector.

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US Constitution
2008 Federal Bailout
2008 Economic Crisis

How is Congress fulfilling their obligation to oversee the Federal Reserve and the Dept of the Treasury as they spend that 700 billion?

Historically, Congress has had no oversight over the Federal Reserve and the Federal reserve has never been audited. The first draft of the bailout bill gave the Secretary of the Treasury extra-ordinary powers and precluded judicial review of his actions. The second bill provided for an oversight committee, but the members of the committee weren't even appointed until weeks after the funds had begun to be dispersed.

Due to lack of oversight the banks are hoarding the funds and using them to buy out the other banks instead of releasing the funds into the economy.

Rep. Dennis Kucinich has been one of the most vocal proponents in Congress for more strict oversight. There is a clip on YouTube where you can see clips of hearings that he held on the issue in mid November. Kucinich has literally accused the banks of Racketeering and the Treasury of collusion. This is only one of the members of Congress who are proposing more strict oversight but they have yet to make much headway. Under the enumerated powers of the US Constitution (Article I Section 8) Congress has the power to coin and print money. It is often a subject of dispute whether or not the Federal Reserve Act of 1913 , delegating this power to the Federal Reserve, is Constitutional, concurrently whether the bailout is Constitutional. I disagree with the quote below only in that Rep. Shelby calls the "rush to judgement" unprecedented. The Federal Reserve Act was passed in the same manner. Richard Shelby (R-AL), the ranking Republican on the Senate banking committee, says Congress didn't require the banks to disclose exactly what they were doing. "Congress should have known that this was a rush to judgment - this was unprecedented. It was a lot of money that was thrown at a problem," he says. "There was not enough accountability in the language; there was not any real oversight." His concern that the bailout program lacks internal controls is also being expressed by the Government Accountability Office. The GAO adds that, so far at least, there's no way to know if the money is aiding the economy as intended. http://www.npr.org/templates/story/story.php?storyId=98806962&ft=1&f=1001

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Nigeria
2008 Federal Bailout

What are the effects of global economic meltdown on Nigeria's banking sector?

More email scams.

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2008 Federal Bailout

In very simple terms and language can you explain what has happened to the economy and how the proposed bailout is supposed to work?

Because the Federal Reserve is run by a banking cartel with no oversight from congress and their activities are secret, it is possible that the current crises could have been engineered by that banking cartel for the purposes of increasing their power base. Your tax money is being given to big banks to gobble up smaller banks. It is not going to support mortgage securities as congress directed. Congressman Kucinich is really upset, he's accused the treasury of rewriting the law. See the YouTube link below. That's what he was supposed to do in the Friday morning speech, and when he didn't the markets tanked. Another demonstration of his total lack of leadership ability. I will answer the first part, "What has happened to the economy" and leave it for someone else to respond to the second part, on how the bailout is supposed to work (if there is one). All problems stem from loose lending standards for home buyers, extending back to year 2000- 2001. The origination of sub-prime loans meant more people now had the borrowing capacity to buy homes. These loans did not require checks of the borrower's income or other assets, so the home they purchased became the collateral for the loan. As there were more people able to in purchase homes, the price of these homes soared. Thus as long as prices were going up, the collatoral was good. The banks to insure the flow of money (credit) to make the sub-prime loans, found ways to make them appear more secure and sell them to investors or investment banks. A poor loan with insurance does not become a good loan, but it passes the risk of default on to the insurers. Now, insurance for home mortgages is unlike insurance for fire or theft (random events). The sudden decline in home values, coupled with higher unemployment, results in more foreclosures. So, those insuring loans began to run out of money. This is the systemic risk that everyone is talking about. In a more complex manner, poor loans were bundled with better quality loans, in a way to make a product that they could sell, to gain more money to loan. In the same way, the systemic risk of a downturn in the economy was difficult to factor into these products. See collatoral debt obligations. Other loan features, intended to make the loans more affordable, included low or no down payment, adjustable rate loans, balloon payments, and no escrow fund creation. The banking industry through these terms was allowing lending that at the time seemed to be popular and profitable, but now with an economic downturn, a disaster. Finally, the banking industry pushed the "home equity" loans, further diminishing equity for home owners.

The funds; if approved, would be used to purchase asset -- presumably default mortgage -- from financial institutions to prevent fire sale, which is selling asset at any price because the financial institutions are in short, and in serious need for liquidity. This intervention can also be considered as a guarantee pricing, not to let the property prices go down to an unacceptable level; or in other words, to prevent a systematic melt down of the financial institutions. - I would like to add: Wikipedia answerers should not engage in politics per the above "ask Bush" response. Shame, Shame. Lots of reasons exists for the market tanking. - I would like to add: In theory, a reverse auction system is employed so the government doesn't overpay for troubled assets. This is where the government specifies what it intends to purchase, giving the properties of the "troubled assets" and the sellers who offer the lowest sales price get their "troubled assets" exchanged for Tresury bonds. At least that's my understanding. This mechanism has been criticized as the seller know more about the assets being transferred than the buyer. Just the facts.... The "ask Bush" comment was based on simple fact. He had been asked by congressional leaders to to a "fireside chat" type thing to calm people down. He didn't or couldn't... This crisis is NOT just related to home mortgages. Mortgages are just the "straw that broke the camel's back" sort of thing. If they just wanted to fix the mortgage problem they would have just done some interest adjustment and created a system of direct aid to troubled homeowners. The AIG package was a corporate bailout and so is this one. The Myth of the Mortgage CrisisThe Mortgage collapse is a symptom, not the source, of economic problems in this country. Distribution of wealth in the U.S. precipitated the mortgage crisis. See the related question on this subject. Additional Information: As the initial responder to this question (the Why don't you ask Bush was added later by someone else, ahead of my comments), I would like to add that wikipedia has numerous webpages on what is now a worldwide economic crises: See: http://en.wikipedia.org/wiki/Economic_crisis_of_2008 http://en.wikipedia.org/wiki/Bailout_of_U.S._Financial_System_(2008) It is an evolving story, and I just tried to summarize one critical aspect, the loose lending standards in the US. Please be respectful and factual. Also, I commend the responder who clarified the reverse auction process for me.

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Economics
2008 Federal Bailout
2008 Economic Crisis

Nature and scope of Industrial economics?

mai tumse answer puch raha hu bekuf

343536
2008 Federal Bailout
2009 Economic Stimulus Plan
Lehman Brothers

What are the causes and effects of recession 2008?

.- Stagnating oil prices (easily surpassing the $ 100 a barrel), driven by geopolitical uncertainties, the collapse of stock markets and subsequent diversion of speculative investment market and the expected oil production cuts by the OPEC.

2.-Continued escalation of prices of staple foods (around 15%), due to the effect called "second round" (translation by companies from increased costs of crude oil and raw materials along with wage increases the prices of manufactured products; abusive margins of companies and brokers and a totally inefficient administration and lack of mechanisms to control the ceaseless desboque with consequent rises in inflation and subsequent contraction of consumption.

3.-runaway inflation rates close to 6% and unbridled growth of foreign debt (d 2.5 billion U.S. dollars) and current account deficit (15% of GDP) for 2008 as a result of the above two points, with a consequent drop in state revenues Autonomies and loss of purchasing power of workers in a near future due to salary increases below the inflation rate or the freezing or reducing them.

4 .- Rise in interest rates by the European Central Bank to reach 4.5% in the last quarter of 2008 with the aim of trying to curb rampant inflation in the euro zone (close to 5%) the immediate impact on mortgages and bank loans due to increases chilling Euribor (up almost 6%); economic strangulation consequent extensive social and dramatic increase in delinquencies and embargoes banking collapse of securities (around the IBEX 10,000 points at the end of the year) and diversion of investment to fixed income and real estate.

5 .- An increase in the rate of unemployment up to 12.5% at the end of 2008, due to the outbreak of the housing bubble and subsequent domino effect in the sectors linked to the construction of a united euro artificially appreciated that the cause of the bottleneck exports and the stagnation of the tourism sector (into recession in the second half of 2008 and ending the year with a meager increase of 1.5% of GDP), with the proverbial drop in state revenues and the consequent contraction of investments basic infrastructure and social service

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2008 Federal Bailout

What is CEO salary cap on new bailout package?

Under the www.cnn.com website, you can find the bill that the House defeated on Monday. Pages 31 and 32 identify the "appropriate standards for executive compensation and corporate governance" for those participants in the program. There isn't any ceo salary cap in the plan. However, the Secretary of the Treasury is given authority as follows: a) limits on compensation that exclude incentives for executive officers of a financial institution to take unnecessary and excessive risks that threaten the value of the financial institution during the period that the Secretary holds an equity or debt position in the financial institution. b) a provision for the recovery of the financial institution of any bonus or incentive compensation paid to a senior executive officer based on statements of earnings, gains or other criteria that are later proven to be inaccurate and c) a prohibition on the financial institution making any golden parachute payment to its senior executive officer during the period that the Secretary holds an equity or debt position in the financial institution. 3) Definition - For the purposes of this section, the term "senior executive officer" means an individual who is one of the top 5 execustives of a public company whose compensation is required to be disclosed pursuant to the Security Exchange Act of 1934 and any regulation issued thereundera and non-public company counterparts.

313233
Economics
US Government
2008 Federal Bailout

How will the US government's 700 billion affect tax payers?

The Bigger Question is how will the resulting fallout affect you personally. The bailout may cost you $2600 but the loss in total wealth will be much greater than that. You should invest in internal funds or mutual funds to diversify your wealth.

Sources:

http://www.amfi.com/types/international-mutual-funds

http://financialplan.about.com/

I've heard that every single American just went in debt $2700 because of it - INCLUDING children!

I'm assuming that's because of some taxes somewhere that we will have to pay.

Actually the government will be purchasing, on everyone's behalf, hundreds of billions of dollars worth of mortgage-backed securities. Effectively everyone will own a piece of America's real estate. When the government sells these mortgages, at a potential profit, everyone benefits. This could actually turn out to be one of the great money makers ever for the United States Government. Bill Gross from Pimco states that this is one of the greatest investment opportunities for America.

That anyone or organization, let alone the government could turn a profit on the

defaulted loans is just ludicrous. Many properties are being vandalized. Most will be in disrepair by the time anyone who can actually afford them will have the cash to buy them. There is $1.3 trillion in bad loans, so be prepared when "they" come back looking for the remaining $600 billion.

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2008 Federal Bailout
Public Health and Safety

Why is food and drink not permitted near your computer work stations?

Because of spillage. This could cause a computer to brake or even electrocuting yourself. You also should not have food around your computer as crumbs and bits of food will get trapped within the keyboard and mouse which is very unhigenic.

141516
2008 Federal Bailout

What is ostentatious goods?

goods of ostentation is one of the factors or exemption on the law of demand. Goods of ostentation states that if the price is high, the demand is also high. The graphical representation of this shows the movement of the curve from left to right as relates to the price and quantity demand. In addition the demand is high because of the prestige it gives for those buying it.

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