Bailout

A bailout is an attempt to control market conditions by an infusion of tax dollars into the market. Typically, a bailout refers to corporate bailouts, which is the transference of tax dollars to private corporations as a means of foregoing bankruptcy.

The primary function of a bailout is to improve the liquidity of currency throughout global credit markets, which allows banks and corporations to lend and encourages consumers to buy. Without adequate liquidity, however, banks and corporation cease lending to consumers and invariably to other banks.

Those who oppose bailouts, however, suggest that the practice interferes with the natural tendencies of market conditions, and rewards failed corporations with tax-payer dollars.

Conversely, those who support bailouts argue that they function as a necessary safeguard to prevent the systemic collapse of financial markets.

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Latest blogosphere posts tagged “Bailout”

• Market Crash Postponed

  
  Trade the Picture — Authority: 133
  Back in September, I outlined how the S&P is gunned higher by buying the Euro Yen (EURJPY) spread against the US dollar. The chart below shows the spread on the daily timeframe. This spread, along with many other inter-market relationships are shaping my outlook into year end: The S&P and precious metals will ...
  4 hours ago

• Budget Surplus Just A Memory Now… (Budget Deficit PAID off in 2012)

  
  CHESSNOID — Authority: 507
  I remember not too long ago when we had a Democrat President and a Republican controlled House and Senate and something crazy happened.  We had a budget surplus.  Under President Clinton’s watch, there were 3 budget surpluses AND we were to be rid of our national debt by the year 2012. How could things get mucked ...
  5 hours ago

• History; A Great Crime Novel:

  
  Mike Folkerth - King of Simple — Authority: 121
  Good Morning all of you open minded free thinking people out there in reality land; hold your nose and close your eyes, another dose of the King of Simple News is on the air.First of all, I want to say that I don’t dislike anyone due to their race. I have some Mexican guys [...]
  7 hours ago

• Job Losses May Trigger 2nd Banking Crisis

  
  LoanWorkout.org — Authority: 440
  The unemployment rate now stands at 10.2%, yet stocks are at a 2009 high. The bulls will tell you not to worry; the unemployment rate is a lagging indicator. True as that may be, Charlie Gasparino author of The Sellout, has a word of warning: the jobs data may be a leading indicator when it [...]
  7 hours ago

• Bank Failure Friday Fells a ‘Healthy Bank’ Bailout Recipient

  
  BuzzFlash.net: published — Authority: 548
  United Commercial was one of five bank failures Friday, following bank closings earlier in the day in Georgia, Michigan, Minnesota and Missouri. The number of bank failures for the year now stands at 120. It’s the most failures since 1992, when the FDIC closed down 181 banks. The total cost of the other four bank ...
  12 hours ago

• Greens Urge Defeat of the Democrats’ “Insurance Industry Life-Support” Bill in the US Senate

  
  Orange Juice — Authority: 573
  Greens urge defeat of the Democrats’ “insurance industry life-support” bill in the US Senate and call for a rally of efforts to enact Single-Payer/Medicare For AllGREEN PARTY OF THE UNITED STATEShttp://www.gp.orgFor Immediate Release:Tuesday, November 10, 2009Contacts:Scott McLarty, Media Coordinator, ...
  13 hours ago

• Will Lady Justice Weigh In on The Greatest Heist in History?

  
  Wall St. Cheat Sheet — Authority: 625
  Here we are approaching 2010 and we have not yet punished the thieves who caused the Greatest Heist in History. It’s one thing for justice to allude Osama bin Laden as he scurries through miles of mountainous terrain. It’s another when the assholes who screwed us are sitting in luxury high-rises going about their ...
  13 hours ago

• Chairman Says G.M. Can Repay Taxpayers

  
  NYT > Theater — Authority: 913
  The chairman of General Motors, Edward E. Whitacre Jr., said Tuesday that the automaker would be able to repay all of its government loans and would begin doing so soon.
  15 hours ago

• Pandit: Glass-Steagall isn’t the way to rebuild banking

  
  Mound City Money — Authority: 470
  John Reed, one of Vikram Pandit’s predecessors as chief executive of Citigroup, has been saying recently that Congress made a mistake in repealing the Glass-Steagall Act, which separated the banking and investment industries. Pandit, however, doesn’t think reinstating the Depression-era law…
  16 hours ago

• Why does Pelosi want to cave in to the demands of union thugs?

  
  http://diddy.name — Authority: 165
  They extracted ungodly high wages and benefits for their marginally talented employees and now find that they can’t pay the pensions. The US government has only one pension system (aside from federal employees) - social security. Why should the lazy union slobs get a bailout? Does Pelosi think they will break her ...
  18 hours ago

• AIG may be able to repay the U.S. after all, Moodys now says

  
  DailyFinance — Authority: 792
  Filed under: Company News , Economy , American International Group, INC. Just how much taxpayers will recoup of the $700 billion set aside last fall to bolster companies hard hit by the credit crisis has been a matter of debate for more than a year. And because American International Group ( AIG ), the deeply ...
  1 day ago

• Ask the Best and Brightest: Did Chrysler Seal its Fate by Killing EVs?

  
  Car Reviews & Car Buying Blog — Authority: 503
  There’s a backlash a brewing over Chrysler’s decision to axe its EV and hybrid program. The move makes sense from an business point-of-view; the company doesn’t have enough money to chase sky pie. Politically, it’s all kind of nuts. Lest we forget—and even the normally automotively absent-minded USA Today ...
  1 day ago

• GM yanks back Opel, jerks around German government

  
  Bizmology — Authority: 123
  Fritz Henderson, the president and CEO of General Motors , flew to Germany this week to follow up on GM’s surprising — nay, shocking — decision to take Adam Opel and Vauxhall Motors off the auction block, just weeks after designating Magna International and Sberbank as the preferred bidders for majority ...
  1 day ago

• New Hampshire Will Bailout Failing Newspaper

  
  Big Government — Authority: 798
  From the Nashua Telegraph : The state of New Hampshire last week agreed to guarantee 75 percent of a $250,000 loan from an Upper Valley bank to the new owner of the Eagle Times, an unusual deal because it involves a daily newspaper and the government it covers. The Executive Council on Wednesday ...
  1 day ago

• ED and Barney mix it up over Wall Street bonuses (video)

  
  HOWIEINSEATTLE — Authority: 441
  MSNBC-ED Show, video (07:25).
  1 day ago

• Brits bust up banks; will the U.S. follow suit?

  
  WalletPop Blog — Authority: 719
  Filed under: Banks , Recession In a move that could be an indication of how the U.S. will handle the problem of banks deemed "too big to fail," the United Kingdom is forcing some of Britains biggest banks to split themselves up. According to this article in the Washington Post , the Royal Bank of Scotland, ...
  1 day ago

• The FHAs reserve fund could be a black hole for U.S. taxpayers

  
  DailyFinance — Authority: 792
  Filed under: Economy , Investing As mortgages continue to sour, the Federal Housing Administrations reserve fund continues to deteriorate. Thats not a big surprise. What might be a surprise is the fact that the FHA can get bailout money from the U.S. Treasury without seeking approval from Congress . An automatic ...
  1 day ago

• Dodd Finance Regs Would Gut the Fed’s Powers

  
  The Washington Independent Blog — Authority: 155
  Sen. Chris Dodd (D-Conn.) is set today to unveil legislation overhauling the way the banking industry is regulated. On certain points, the Dodd bill mirrors the wish list outlined by the Obama administration over the summer, including the creation of a new federal agency designed to protect consumers from the ...
  1 day ago

• Change Wall Street can believe in (Holly Sklar)

  
  Dollars & Sense blog — Authority: 491
  Hat-tip to Mike P. By Holly Sklar Distributed by McClatchy Tribune News Service, 11/6/09 Copyright 2009 Holly Sklar Wall Street is doing to America what private equity firms did to Simmons Bedding and many other productive companies. Taking control with borrowed money, stripping assets, slashing jobs and cashing ...
  1 day ago

• AL CAPONES REAL CRIME

  
  THE MARK MARTINEZ SHOW: Talk Radio for Liberals and Real Conservatives — Authority: 129
  Ive written about this in the past but it bears repeating. The people who put together, begged for and then pushed the toxic instruments that got us into this economic mess dont deserve to be compensated a kingly sum for their efforts. Everyone knows that if you offer someone insurance and then fail to pay ...
  1 day ago

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