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”

 

• Portugal bankers warn EU to stop ‘playing with fire’

  
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  The top bankers expressed concern that the treatment of Cyprus has set a new precedent and as a result nervousness in the region is reaching dangerous levels.“Leaders need to moderate their language. This could be very bad,” Ricardo Espírito Santo Salgado, chief executive of Banco Espirito Santo, told the ...
  4 days ago

• Germany is willing to accept a higher inflation target but does it matter?

  
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  Last year, we saw a sea change in official German policy regarding the euro crisis and inflation. The German government came out in favour of accepting higher inflation domestically in Germany as a sacrifice for eurozone wage and price adjustments to help alleviate crisis. The question is whether this matters. I ...
  4 days ago

• The Flaws of BSP’s Real Estate Monitoring and Banking Stress Tests

  
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  Rushing in defence over growing concerns of the risks of asset bubbles, the Philippine central bank, the Bangko Sentral ng Pilipinas conducted a real estate exposure test monitoring which included a partial banking stress test [1] . In the report the BSP has not explicitly issued a confirmation or a denial ...
  5 days ago

• CREDIT SUISSE: Portugal Will Soon Need More Money And A Bailout Isn’t The Best Solution

  
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  Portugal, which is entering the last year of a three-year European Union aid program, will likely need further help from Europe at a time when core countries in the region, such as Germany, are fast losing enthusiasm about providing financing to ailing peripheral nations.   The most likely solution to this problem, ...
  1 week ago

• Former Pakistan PM Nawaz Sharif declares victory in historic poll

  
  heave-ho.org — Authority: 159
  The results, which need to be officially confirmed, indicated Sharif’s party has an overwhelming lead but would fall short of winning a majority of the 272 directly elected national assembly seats. See more here: Former Pakistan PM Nawaz Sharif declares victory in historic poll
  1 week ago

• U.K. Bank Chief Quits Amid Bailout Fears

  
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  The Co-operative Banking Group said its chief executive would step down hours after the bank was downgraded to junk status by Moody’s Investor Services, stoking fears it could require a government bailout. WSJ.com: Management
  1 week ago

• David Stockman w Jon Stewart (video) and Plutos Deformation

  
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  David Stockman, former congressman and budget director for Ronald Reagan, has done our nation a tremendous service with his book The Great Deformation: The Corruption of Capitalism in America.Astrologers will recognize (and many have written the last few years on the topic) that transformative, destructuring Pluto, ...
  1 week ago

• Jamie Dimon Love Festival Starring Maria Bartiromo

  
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  DIMON PUBLIC RELATIONS Titans Declare: Jamie Dimon Is The Greatest Of All Time The actual CNBC fellatio doesnt begin until Maria starts talking to her guests at 2:45, though the obsequious quotes from famous CEOs regarding Dimon and JPMorgan that precede her blowjob, should not be missed. This one is a classic, ...
  1 week ago

• Fannie Mae To Pay Treasury $59 Billion After Record Profit

  
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  Fannie Mae to Pay Treasury $59.4 Billion After Record Profit | bloomberg.com/news/2013-05-0… — Daily Bail (@TheDailyBail) May 10, 2013 READ THE STORY AT BLOOMBERG After this latest payment, Fannie Mae will have paid back Treasury a total of $95 billion, compared with $117 billion of capital infusions ...
  1 week ago

• TARP Bank Exec Pleads Guilty To Bank Fraud Conspiracy

  
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  SIGTARP CHRISTY ROMERO Former senior officer at TARP bank Wilmington Trust pleads guilty to bank fraud conspiracy, go.usa.gov/TA3Q . — SIGTARP (@SIGTARP) May 8, 2013 READ THE SIGTARP PRESS RELEASE     Romero leads SIGTARP’s staff of federal agents, attorneys, investigators, and auditors ...
  2 weeks ago

• The Bank Run Excuse For Bailouts...Was Officially Bullshit

  
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  About That Bank Run Excuse For Bailouts... --- By John Titus, Creator of Bailout R ecently, while researching historical causes of bank failures, we came across a scholarly economics paper that proves the justifications for bailouts, and those for TARP in particular, are an even bigger crock of shit than the ...
  2 weeks ago

• Bailed-Out Banks Paying Back TARP With Govt Money

  
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  THIS IS NOT A POSITIVE DEVELOPMENT Paying your Visa bill with your MasterCard.   --- Banks Used Two Billion In Govt Loans To Repay TARP SIGTARP REPORT EXPOSES BAILED-OUT BANKS An Obama administration program is under fire, with federal investigators finding that community banks used government funds to ...
  2 weeks ago

• Greece: Three years after the bailout

  
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  By Mark Thompson Its been three years since Greece was granted 110 billion euros in the first of two bailouts by its EU partners and the International Monetary Fund. Harsh austerity measures have driven the economy into the ground since then. Unemployment has soared. More than 6 in 10 young workers are out of a job. ...
  2 weeks ago

• The Economist on “the muddle-headed world of American public pension accounting”

  
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  As state governments across the nation struggle to address a public pension underfunding crisis they can no longer deny, The Economist is the latest major news outlet to turn its gaze on the ongoing debacle. In the current issue, the magazine’s “Buttonwood” column draws a sketch of U.S. public pension ...
  2 weeks ago

• I Would Like My Bailout in Bacon

  
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  Satire, politics, geekery, and dogs... “Welcome to the blogroll.”—David Burge, Iowahawk “Wesley pokes the Left in the eye with a little boy smile. It’s wonderful to watch them laughing, and then realize that they’re laughing at themselves, and then look around the room to see if anyone ...
  2 weeks ago

• Feeling rich through debt: Modern banking has replaced real economic prosperity with massive levels of debt. Housing affordability reaches multi-decade highs while household incomes retreat to 1990s levels.

  
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  One of the biggest headlines right now is how the housing market is pulling the entire market up.  Housing prices are soaring while the stock market is making record highs.  Yet a large portion of the housing run-up is being caused by easy money that has been created by the Federal Reserve.  Banks are out-bidding ...
  2 weeks ago

• France - License to Print

  
  WealthCycles.com - Economic Wealth Cycle & Financial Education Experts — Authority: 474
  The European Central Bank (ECB) sets no limits in Paris to save its banking system. Bonds of any quality, it says, can in fact be minted into euro beyond the Alps. The euro speaks French. While Cyprus suffers the compulsory levy on current accounts, ECB President Mario Draghi grants a special permit to Paris in ...
  2 weeks ago

• What did he mean by that?

  
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  “What did he mean by that?” 19th century Austrian diplomat Metternich is said to have asked of  Talleyrand when he heard the French statesman had died. The euro zone crisis, and the response of its leaders, has often required the same question to be asked. There were some carefully chosen words from Germany ...
  2 weeks ago

• IMF reopened the debate over Greece bailout

  
  The Forex Trading System — Authority: 149
  Outlook: Analysts say the dollar was firm yesterday because the payrolls report was so good last Friday, as though that’s the way FX traders think: good data, higher currency. But in practice, it doesn’t work that way, at least not when it comes to the dollar. Far more important than data is the effect the data ...
  2 weeks ago

• Just another government bailout

  
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  By Mustang Bobby Remember how a lot of people said that bailing out the auto industry was a waste of money and that we should let Detroit go bankrupt ? Yeah, how’d that work out , anyway? Today, the U.S. Department of the Treasury announced the next step in its plan to sell its approximately 241.7 million ...
  2 weeks ago

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