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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Original Technorati articles tagged “bailout”

• in Finance
  Finance Chiefs Meet To Discuss Greek Aid, Bailout Extension
  Reports show a draft document to be shown to policy makers makes a recommendation that Athens be allowed two-years to hit budget targets.
  by betandbingo / on Nov 13, 2012
• in Politics
  In Effort to Reduce Spending, Greece Eliminates Press Ministry's 'Secret Fund' Used for Propaganda
  The Greek government has announced that a secret fund reserved for propaganda has been axed from the budget.
  by clairethebear88 / on Aug 24, 2011
• in Lifestyle
  The Cure for Cancer Has Been Found and is Purposely Being Ignored
  Researchers at the University of Alberta have discovered a simple cure for cancer but pharmaceutical companies aren't producing it.
  by clairethebear88 / on May 14, 2011

Latest blogosphere posts tagged “bailout”

 

• Bank America Mortgage Racket: We Were Told To Lie

  
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  Not that we needed any further evidence of the racketeering enterprises run within the mortgage operations on Wall Street, but with the recently delivered testimony of Simone Gordon, a senior collection officer within Bank of America’s mortgage ‘racket’ . . . we got it. I first questioned whether the activities ...
  3 days ago

• Euro fund chief: do without IMF in long term

  
  FOXNews.com — Authority: 880
  The head of Europes bailout fund says the region should eventually aim to do without help from the International Monetary Fund. Klaus Reglings comments in Fridays edition of Germanys daily Frankfurter Allgemeine Zeitung add to recent hints from other European policymakers that the bloc should aim to ...
  3 days ago

• MF Admits ‘Notable Failures’ During Greek Bailout

  
  — Authority:
  John Weeks: IMF admits failure during bailout of Europe; now it should face up to its role in Africa … Read More
  4 days ago

• United States of Europe Transfers Northern Cash South

  
  WealthCycles.com - Economic Wealth Cycle & Financial Education Experts — Authority: 459
  In theory, the European Union is grounded on a system of wealth transfer--the money of the better-off north in exchange for the human and resource capital of the poor south. The treaties and institutions of the EU were designed to bring poorer member states up to the same level as the wealthier members, resulting in ...
  5 days ago

• Backdoor Bailouts Begin

  
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  Detroit, MI (Newscom) The Treasury Department’s release of $100 million from the Hardest Hit Fund last week amounts to a federal bailout of five Michigan cities without congressional oversight or approval. The Hardest Hit Fund, part of the 2008 Troubled Asset Relief Program, was intended to provide assistance ...
  5 days ago

• BOE’s Fischer Wants To End Uncertainty As RBS CEO Exits

  
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  The Bank of England’ markets director Paul Fischer to end the uncertainty over Royal Bank of Scotland Group Plc (NYSE:RBS) (LON:RBS)’s long-term plans. Fischer said the lack of clarity over when the state-controlled bank will be returned to the private sector has hampered the bank’s ability to sustain lending ...
  5 days ago

• Greek Tragedy: Nation Gets First Ever Emerging-Market Demotion

  
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  More bad news for Greece this week , as MSCI Inc. ( NYSE:MSCI ) has made it the first ever country to be downgraded to emerging-market status. The news comes amidst of a variety of factors, chief of which is Greece’s failure to meet criteria regarding securities borrowing and lending facilities, short selling and ...
  5 days ago

• DealBook: Insurers Inflating Books, New York Regulator Says

  
  heave-ho.org — Authority: 148
  New York regulators say life insurers are putting policyholders at risk and could cause another taxpayer bailout. Excerpt from: DealBook: Insurers Inflating Books, New York Regulator Says The post DealBook: Insurers Inflating Books, New York Regulator Says appeared first on heave-ho.org | all the news ...
  5 days ago

• Germany Grapples (Again) With The Choice Between Its Constitution And The Euro

  
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  testosteronepit.com / By Wolf Richter / June 11, 2013, 4:26PM There is nothing like the hearings in the hallowed and staid atmosphere of the German Federal Constitutional Court to bring out the knives … outside. “It would behoove a Schäuble” – that’s German Finance Minister Wolfgang Schäuble – ...
  5 days ago

• Europe’s EUR500 Billion Quasi-Quantitative Easing

  
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  zerohedge.com / By Tyler Durden / 06/12/2013 08:43 Submitted by Mark J. Grant, author of Out of the Box, Five Eurozone countries now have loans for half a trillion Euros. These members of the Euro currency union are receiving loans from the one of two bailout funds which are financed by the other 12 ...
  5 days ago

• Market Update: Easy Come, Immediately Go!!! DOW JUST LOOSE +100 POINTS IN HALF AN HOUR!!! Greek Bonds On Verge of Bear Market!!!

  
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  zerohedge‏@zerohedge2 min POMO begins: smallest of the month at $0.75 – $1.00 billion zerohedge‏@zerohedge3 min Banca Pop Milano halted down Gregor Peter‏@L0gg0l2 min reason for sell-off: $$ rumor — Greek govt in emergency cabinet meeting zerohedge‏@zerohedge1 min Greek bonds on verge of bear ...
  5 days ago

• Home buyers may pay IPT before getting Title Deeds

  
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  A Cypriot MP has tabled a bill for discussion at the House Finance Committee requiring property buyers to pay Immovable Property Tax even though they do not have the Title Deeds to the property they have purchased. The post Home buyers may pay IPT before getting Title Deeds appeared first on Cyprus Property News ...
  5 days ago

• After fighting against inflation, VN now tries to stimulate demand

  
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  VietNamNet Bridge – The bailouts, if they are launched, should target consumers in order to stimulate the demand, experts say, warning that the deflation, if it occurs, would be more dangerous than the inflation. Dr. Tran Dinh Thien, Director of the Vietnam Economics Institute, has noted that the inflation has ...
  6 days ago

• “Eminent Domain” Back On Table Following Fed’s Latest Bailout Proposal

  
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  zerohedge.com / By Tyler Durden / June 11, 2013, 21:58 -0400 We first discussed the possibility of state and local  governments using  eminent domain  to ‘save us’ from further housing issues a year ago  but now the NY Fed has gone one step further with an academic-based justification for why this process ...
  6 days ago

• Greece Shuts Down State Run Hellenic Broadcasting Corporation

  
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  Greece will temporarily shut down Hellenic Broadcasting Corporation (ERT), the radio and television company owned by the state as part of its initiative to save money. As a result, 2,500 individuals will end up jobless, according to a report from Nicholas Paphitis of the Associated Press. Hellenic Broadcasting ...
  6 days ago

• VIDEO: U.S. Government Latest News: Google Asks to Publish More Government Information

  
  — Authority:
  Google asks to publish more government information. Booz Allen fires Snowden for violating firm’s ethics, policies. GM Stock Sale Brings Government $3.2B This Year Thanks for checking us out. Please take a look at the rest of our videos and articles. To stay in the loop, bookmark our homepage . ...
  6 days ago

• Did the ECB Mega Bailout Just Hit the Wall?

  
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  gainspainscapital.com / By Graham Summers / June 11, 2013 Few analysts know or admit it, but the only thing that held Europe (and ultimately the financial system) together since May 2012 was the promise of unlimited bond purchases from the ECB. The reason this worked was because traders poured into European ...
  6 days ago

• Did the ECB Mega Bailout Just Hit the Wall?

  
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  by  Phoenix Capital Research   Few analysts know or admit it, but the only thing that held Europe (and ultimately the financial system) together since May 2012 was the promise of unlimited bond purchases from the ECB.   The reason this worked was because traders poured into European bonds in an effort to ...
  6 days ago

• VIDEO: Yahoo! Finance Headlines – European Central Bank, General Motors, International Monetary Fund, Apple, Tim Cook

  
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  ‘Battle Lines Drawn’ in German Court Over ECB. GM Stock Sale Brings Government $3.2B This Year. Do We Really Need a Bigger IMF?. Music Service, Mobile Software Expected from Apple. Apple Must Shock and Amaze Once More Thanks for checking us out. Please take a look at the rest of our videos and articles. ...
  6 days ago

• VIDEO: Yahoo! Finance Headlines – European Central Bank, General Motors, International Monetary Fund, Apple, Tim Cook

  
  — Authority:
  ‘Battle Lines Drawn’ in German Court Over ECB. GM Stock Sale Brings Government $3.2B This Year. Do We Really Need a Bigger IMF?. Music Service, Mobile Software Expected from Apple. Apple Must Shock and Amaze Once More Thanks for checking us out. Please take a look at the rest of our videos and articles. ...
  6 days ago

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