Question

1) Given that this article was written a few years ago, what do you now think of the government's "bailout" plan? (I am assuming everyone has some knowledge of the bailout given to banks by the White House to stabilize our financial markets. I will leave it to you to research the bailout. Please provide your opinion based on what you've learned in the course thus far).

2 paragraphs

Answer 1

ailout refers to the act of the government providing money to the company which is fallen down in the business and have no means to move further like bankruptcy or any financial crisis.

This was a plan to recapitalise the financial market incase of total collapse.They made a plan to buy the bad assets which was performing low but again this was voted down by the in house members.This also was potrayed that it could further cause issues in the market and led to economic depression.The opposition were not convinced because they had the poll of the public who had voiced that better alternatives were not being considered and this could cause issue in the market.On oct 1 2008 the senate made an amendment in the law for the economic stability which was passed to the HR and later additional informations were added to it making the pages go higher and this was signed by president George W Bush who signed it for the the asset relife program in buyin the falling assets.

On 8th october the banks again came up with a rescue plan to provide debts gurantee and other means of buying their stocks in the banks this was followed by Europe and the U.S who again came up with new methods of buying stocks across wide to boost the positivity in the decision made.In the meantime the limit or the duration of the asset relief program was slowly brought down by other support or guaranteed methods done by the banks