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”

• Kucinich: Why I Voted No

  
  Truthdig: Drilling Beneath the Headlines — Authority: 723
  By Rep. Dennis Kucinich Rep. Dennis Kucinich explains why he voted against the landmark health reform bill, which he says “continues the redistribution of wealth to Wall Street at the expense of America’s manufacturing and service economies.” READ THE WHOLE ITEM Related Entries November 7, 2009 ...
  7 hours ago

• Why Wouldn’t the U.S. Just Print its Way Out of Debt?

  
  The Cynical Economist — Authority: 148
  From Daily Reckoningby Bill BonerGovernments are running breathtaking deficits…and accumulating alarming debts. Japan has a national debt of nearly 200% of its GDP. Where did that debt come from? It came from 20 years of trying to buy its way out of a slump with borrowed money. Of course, it didn’t work. But now, ...
  9 hours ago

• U.S. STANDS FIRM IN SUPPORT OF WALL STREET WHILE THE REST OF THE WORLD TAKES THE ECONOMIC CRISIS SERIOUSLY

  
  Livinglies's Weblog — Authority: 131
  MR. GEITNER, MR. SUMMERS AND OTHERS WHO ARE ON THE ECONOMIC TEAM DESERVE some CREDIT FOR BRINGING US BACK FROM AN ECONOMIC PRECIPICE THAT WOULD HAVE RESULTED IN A DEPRESSION FAR DEEPER AND LONGER THAN THE GREAT DEPRESSION. AND THEY SHOULD BE CUT SOME SLACK BECAUSE THEY WERE HANDED A PLATE ON WHICH THE ECONOMY WAS ...
  11 hours ago

• Real Estate Short Sale 4 - Foreclosure & Mortgage Marketing Jan09 - Objections & Advantages

  
  Ethical Foreclosure Fortunes — Authority: 149
  Facing Foreclosure on Your Real Estate Mortgage, Short Sale & Loan Modification are Alternatives. Hire an Expert Short Sale Negotiator, Experienced Real Estate Agent. Go To RealEstateMarketingThisWeek.com Part 4 (Excerpt) If facing foreclosure call a short sale expert and get working on your short sale today The ...
  13 hours ago

• Will the Public Ever Learn They Need to Be Financially Educated?

  
  Fisher Funding — Authority: 156
  Nothing illustrates this point of the public needing a practical financial education more dramatically than our present worldwide financial debacle and recession caused by the 3 ring circus and yet they are the major recipients of the TARP bailout money, not us the taxpayer. In both directions, they’ve made billions ...
  13 hours ago

• Reality Check: U.S. has lost jobs in 22 straight months

  
  CHESSNOID — Authority: 509
  Our media puts out many reports that often conflict with each other. Our politicians in office try to spin the reports in a positive light.  They know what happens on their watch is what the American people will hold them accountable for.  The problem in solving problems in general is that you have to acknowledge ...
  17 hours ago

• Warrent Buffet the $40+ billionaire get taxpayers bailout

  
  Stupidica — Authority: 162
  I had lunch last week with Rolfe Winkler, who is an up and comer in the blog world, a thinking man’s Felix Salmon. He is similarly annoyed with St. Warren — but rather than engage in my sophmoric venom spew, he went to the spreadsheet to discover that Buffet owns major stakes in 8 companies that have ...
  23 hours ago

• Musical Interlude

  
  Angry Bear — Authority: 627
  Among the people who have been updating The Theory of Finance for the ObamaNation is Gregg Sommerville, whose job depends to some significant extent on people not believing the following riff: More music below the fold. The Bailout Rap and the Subprime Mortgage Blues
  1 day ago

• Short Sighted, Long Lines

  
  Bearing Drift :: Virginia Politics On-Demand — Authority: 609
  The line is getting longer and I’m not talking about the one for the Swine Flu vaccine . After spending an estimated $3,500,000,000,000 on a variety of bailout schemes including TARP and emergency loans from the Fed, the unemployment rate still hit 10.2% , the highest in over 25 years. Meanwhile, the US ...
  1 day ago

• Warren Buffet owns major stakes in 8 companies that took more than $100 billion in government bailouts.

  
  Schizo America — Authority: 117
  Capitalist? I don’t think so.  He’s sucking off the public trough.  Profiteering off of the hard work of regular Americans. According to Rolf Winkler of Reuters : Chart created by Rolfe Winkler, found at Barry Ritholz’s blog, The Big Picture Post from: Schizo America Thank you for visiting!
  1 day ago

• Poll results: Newspaper bailouts

  
  Apostle Islands Navigator — Authority: 452
  88% of respondents said No. 12% go to the Yes column. To those of you 12%, you do realize the country is broke, right? I’d love to hear why you think we should bail out newspapers. Do you work for a troubled newspaper? I’m curious, really, I am.Posted in Polls Tagged: Newspaper Bailout [...]
  1 day ago

• Fannie Mae and Wells Fargo Announce Creative Mortgage Solutions: A New Thing Called Renting. Option ARM Scenarios, Lease for Deed, and Delaying the Financial Future.

  
  Dr. Housing Bubble Blog — Authority: 520
  Last week, foreclosure Hall of Fame member and government stepchild Fannie Mae announced a stunning $18.9 billion loss.  Remember last year when we were told that bailing out the enormous Government Sponsored Entities that we would be turning a profit?  Well that didn’t exactly pan out and both Fannie Mae and ...
  1 day ago

• Reading Between The Lines Of David Einhorns Attack On CDS

  
  zero hedge — Authority: 761
  The $26.5 trillion (gross notional) CDS market is under siege. Or such is the latest news from the formerly pervasive (ab)user of CDS trading strategies, David Einhorn. In an op-ed in the FT , Einhorn states "I think that trying to make safer credit default swaps is like tryingto make safer asbestos,” he writes in ...
  1 day ago

• Conflict Of Interest.

  
  Michigan Taxes Too Much — Authority: 471
  An anonymous commenter brings this up on MJ Perry’s blog.. At 11/06/2009 12:32 AM , Anonymous said… Why is the UAW allowed to represent the workers at Ford? the UAW is now the de facto owner of GM and Chrysler, courtesy of the US taxpayer via the Obama administration. Representing Ford workers ...
  1 day ago

• Right Questions; Wrong Answers:

  
  Mike Folkerth - King of Simple — Authority: 121
  Good Morning all of you great minds out there in the world of the semi-sane; your King of Simple News is on the air.I just returned from 24 hours of driving to Phoenix and back, which gave me a lot time to think. As I made the 100 mile and nearly 6,000 foot descent [...]
  1 day ago

• Its Time To Fire Tim Geithner

  
  Moral Philosophy and Current Events — Authority: 129
  Dylan Ratigan Nov. 2, 2009, 1:37 PM Businessinsider.com A year ago it was revealed to the American people that our banking system is a legalized Ponzi scheme in which bank and insurance CEOs pay themselves billions of dollars in personal compensation to lend and insure assets with money they dont have to customers ...
  1 day ago

• Self Directed IRA Custodian :: Real Estate IRA :: Rollover 401k

  
  Ethical Foreclosure Fortunes — Authority: 149
  www.SunwestTrust.com, 800-642-7167, Self Directed IRA Custodian, Self Directed Real Estate IRA allows you truly diversify your retirement account into more than just the traditional Wall Street investments or bank CDs. Learn more and contact Sunwest Trust, Inc. to set up an account today. We look forward to hearing ...
  1 day ago

• Silent Auction - Scarlet Scuttlebutt

  
  Webkinz - Collectible Stuffed Animal Toys — Authority: 133
  Silent AuctionScarlet ScuttlebuttThanks to donations by local businesses and individuals, over 75 gifts, from Webkinz to professional cookware, will be available. The auction is open during …Watchung library plans silent auctionScarlet Scuttlebuttall 3 news articles » Related External Links Canonical ...
  1 day ago

• HBO Bill Maher video on President Obama

  
  CHESSNOID — Authority: 509
  It is actually good to see original Obama supporters who loved him before the election because they believed all of the promises he made, now actually criticize what they see after the fact.  I remember Bill Maher praising President Obama in the beginning of all the great stuff that was going to happen.  I think ...
  1 day ago

• Zero Hedge Endorses Senator Bernie Sanders Petition To Tim Geithner

  
  zero hedge — Authority: 761
  Petition from Vermont Senator Bernie Sander To Time Geithner Too Big to Fail is Too Big to Exist Financial institutions that are “too big to fail” played a major role in undermining the American economy and driving our country into a severe recession. Financial institutions that are “too big to fail” put ...
  2 days ago

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