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 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
• in Politics
  Why Doesn't The Government Bail Out The People?
  What would happen if the government bailed out the people and not the corporations?
  by binaryblogger / on May 10, 2011

Latest blogosphere posts tagged “bailout”

 

• Bankia shares suspended in Madrid

  
  — Authority:
  http://www.bbc.co.uk Bankia shares suspended in Madrid Trading in Bankia shares is suspended amid reports that it is going to ask for a big government bailout later on Friday. published date:Fri, 25 May 2012 07:37:45 GMT
  14 hours ago

• Your Metaphor is Misleading Me

  
  — Authority:
  People frequently try to persuade us by arguing that "this is like that." Here is what you need to know about this powerful tactic. read more
  1 day ago

• Spain Plans To Bailout Bankia: Claims To Not Be Seeking International Aid To Bailout Spanish Banks

  
  — Authority:
  Spain Plans To Bailout Troubled Lender Bankia To The Tune Of 10 Billion Euros Spanish financial woes are in the center of everyone’s concern in the eurozone as European Leaders and investors are apprehensive the country will soon be seeking international resources to bail out its troubled banking system and its 17 ...
  1 day ago

• Bracing for a Greek Exit

  
  — Authority:
  They say that breaking up is hard to do Now I know that it’s true — Neil Sedaka What’s the Greek word for ‘chutzpah’? We don’t know either. But the leader of the communists/socialists, Alexis Tsipras, has it. He must have heard that old saying: “When you owe your bank $100,000, you can’t sleep ...
  1 day ago

• Bloomberg: Germany Got A Bailout Too, Financed by European Taxpayers

  
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  Did you know that European tax-payers provided Germany with financail support? A …bailout? No? You didn’t? Well, now, you know…. thank to Bloomberg’s report and a KTG-reader who forwarded the link to us. But beware. The news is a secret, so do not let others, especially Europeans, know about it…   Hey, ...
  1 day ago

• Currencies Try to Rebound Today

  
  — Authority:
  Good day. Whew! What a day yesterday in the markets! There was blood in the streets for sure! Things have calmed down a bit overnight and this morning, but the mark that yesterday left on the risk assets is going to be not only felt, but seen for some time. The talk about a Grexit softened its tone a bit yesterday. ...
  1 day ago

• The Shyster: How Romney Will Promise Anything to Be President

  
  — Authority:
  As The Hill reports , Mitt Romney is pledging to bring the unemployment rate below six percent by the end of his first term — and of course in so pledging is once more sinking back to his default position of smearing President Obama: “I can tell you that over a period of four years, by virtue of the policies ...
  1 day ago

• Inability to cobble together euro saving plan hits markets

  
  — Authority:
  LONDON (AP) – Skepticism that European Union leaders will be able to cobble together a plan to kick-start the region’s faltering economy and deal with its crippling debt crisis hit stock markets hard Wednesday. Leaders of the 27 EU countries are to meet in Brussels later in the day for a summit that will focus on ...
  2 days ago

• Greece to pump 18 billion euro in its top four banks

  
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  ATHENS, Greece (AP) – Greece ‘s four biggest commercial banks will receive an 18 billion euro ($23 billion) cash infusion from the European bailout fund. The recapitalization comes amid political uncertainty in the debt-stricken country after inconclusive May 6 elections saw a rise in support for anti-bailout ...
  2 days ago

• Has being part of the eurozone caused the financial problems in Greece?

  
  — Authority:
  It is very clear, and recently confirmed by the Governor of the Bank of England, that the UK will also [...]
  3 days ago

• Ideological Terrorism: Republicans To Blame For ALL The Mess

  
  PoliticalArticles.NET - Blog — Authority: 110
  It was not Democrats who held the economy hostage in a manufactured debt ceiling crisis that caused the nation’s credit rating to be lowered for the first time in history. It was not Democrats... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]
  3 days ago

• Mortgage Crimes Yield Indictments, Convictions & Prison Sentences

  
  — Authority:
  Prosecutors in several mortgage-related criminal cases involving hundreds of millions of dollars have produced indictments, plea agreements and convictions. Attention was drawn to some of the cases because the banks where the crooked executives worked applied for federal bailout funds. Some of the defendants have been ...
  3 days ago

• EU Debt Crisis: Why Eurobonds Won’t Work

  
  — Authority:
  A new bailout mechanism has been proposed for the Eurozone. From the Associated Press , Germany has again made clear its opposition to French proposals for jointly-issued bonds from the 17-nation eurozone as a way to create economic growth and ease the regions financial crisis. At Saturdays G-8 ...
  3 days ago

• Germany: Never a borrower or a lender be

  
  — Authority:
  How exactly are we to deal with the Eurozone crisis? Its been going on a long, long time now. Without much sign of coming to a conclusion.The Euro leaders response has been poor.  Initially,when the UK and USA bore the brunt of the credit crisis, their response was it was not really a Eurozone problem. It was ...
  3 days ago

• Romney campaign: Mitt bleeding companies to death just like President Obama saving auto industry

  
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  Trigger alert: Your jaw is going to drop after you read this question from none other than Andrea Mitchell to Mitt Romney spokesman Eric Fehrnstom (he of "Etch-A-Sketch" fame): ANDREA MITCHELL: There are winners and losers, but isnt it fair to single out companies that might …
  4 days ago

• Perhaps Greece won’t leave the euro, after all

  
  Ezra Klein — Authority: 134
  Recall the reasons for the current euro panic: Greece is getting bailed out and, in return, it’s supposed to cut spending and raise taxes. But Greek voters don’t enjoy this austerity and are rebelling against politicians who agree to the deal. So Germany’s now hinting that Greece might get booted from the ...
  4 days ago

• Perhaps Greece won’t leave the euro, after all

  
  — Authority:
  Recall the reasons for the current euro panic: Greece is getting bailed out and, in return, it’s supposed to cut spending and raise taxes. But Greek voters don’t enjoy this austerity and are rebelling against politicians who agree to the deal. So Germany’s now hinting that Greece might get booted from the ...
  4 days ago

• Perhaps Greece won’t leave the euro, after all

  
  — Authority:
  Recall the reasons for the current euro panic: Greece is getting bailed out and, in return, it’s supposed to cut spending and raise taxes even further. But Greek voters don’t enjoy this austerity and are rebelling against politicians who agree to the deal. So Germany’s now hinting that Greece might get booted ...
  4 days ago

• Hedge Funds Bail On Euro Now

  
  — Authority:
  Good day. I’m writing from home, as I’m headed to the doctor right out of the starting blocks this morning. So since I’m writing from home, this will be short and sweet for sure, especially since I overslept on top of it all! You would think that the “West Coast” time would be out of my system by now! UGH! ...
  4 days ago

• Greece and the euro: the essential guide

  
  — Authority:
  http://www.guardian.co.uk Greece and the euro: the essential guide Bailout to breakup, Syriza to Grexit, all you need to know about the causes and consequences of Greece facing a euro exit1. The issue at a glance2. published date:Mon, 21 May 2012 15:11:47 GMT
  4 days ago

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