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”

 

• GREEKS STUNNED AS TROIKA TAKES POWER

  
  IanPJ on Politics — Authority: 113
  Rolling through my early morning reading I came across this from The Slog: Spearheaded by Berlin, the Troika engaged in overseeing Greek debt management effectively cut out the possibility of a disorderly default late yesterday. In a strongly-worded proposal circulated to EU finance ministers, a German proposal ...
  21 hours ago

• IMFs Lagard Talks Euro Debt Crisis

  
  Common Sense Capitalism — Authority: 114
  Its interesting that the IMF was one of the first organizations to sound the horn on the debt situation in Europe. But, what is their motive?
  1 day ago

• Obama’s Faux Populism Sounds Like Bill Clinton

  
  Truthdig: Drilling Beneath the Headlines — Authority: 697
  By Robert Scheer I get angry because betrayal by the “good guys” for whom I have ended up voting has become the norm. Related Entries January 26, 2012 Mitch Daniels: Bombast From the Past January 25, 2012 Chris Hedges and Lawrence Lessig: Getting Money Out of Politics
  2 days ago

• Key Greece debt talks to resume

  
  top99news - breaking news from the world top newspapers — Authority: 163
  http://www.bbc.co.uk Key Greece debt talks to resume Key talks between Athens and its private creditors are to resume later to try to agree a debt write-off that could free-up bailout funds. published date:Thu, 26 Jan 2012 08:37:49 GMT
  2 days ago

• The great deleveraging event – household debt has fallen 4 percent since recession hit. Household debt has fallen dramatically from the peak when household debt aligned itself with annual GDP.

  
  My Budget 360 — Authority: 443
  The debt bubble bursting has jammed the bottom line of American households.  Debt and money are synonymous for many households in our current economy.  The ability to spend, or buying capacity, is looked at in the same light as savings from many in the financial sector.  This is why data recently released shows the ...
  3 days ago

• Greek bailout update & is Portugal next?

  
  Forex Trading TV Video Blog — Authority: 100
  In the early morning market trading the EUR fell from its three week high against the USD whilst at the same time Asian markets were able to enjoy an upswing after a positive move on Monday trading. Yesterday a number of senior EU Finance ministers met in Brussels though not only was there no concrete [...]
  4 days ago

• US Economy: Romney’s carefully considered “Taxceptionalism”, FOMC and the State of the Union

  
  The Banking and Strategy Initiative — Authority: 426
  Romney’s seeming response to Gingrich disclosures of his tax return with 908k in taxes showed Romney paying twice Newt’s income in taxes but while paying the much hated Capital Gains tax based top rate of 13.9%. Corporates paying an effective tax rate of 32% have been known to scrimp /skimp on their Taxes but ...
  4 days ago

• EU urges Greek debt deal to be reached without delay

  
  Thaindian News — Authority: 534
  Brussels, Jan 24 (IANS) Eurogroup President Jean-Claude Juncker Tuesday called for an early conclusion of a deal on Greece’s debt restructuring programme without delay.“We welcome the increased convergence and ask the Greek government to reach in the next few days a common understanding on the main terms and ...
  4 days ago

• Banker speak

  
  Bits & Pieces — Authority: 120
  Check out this example of what reporting should be. We so rarely see this kind of persistence in questioning bureaucrats in this country. We need more.
  5 days ago

• Greece Shows All the Signs of a Depression

  
  Common Sense Capitalism — Authority: 114
  I want to take a moment and address a point I heard someone make about Greece last week. What I heard was that Greece was going to get a "free pass" for the debt and spending mistakes it has made and will be bailed out collectively by the European Union and private creditors. The comment insinuated that the Greece ...
  5 days ago

• Foreclosure Crisis

  
  All Home Loan Info — Authority: 119
  Lenders and borrowers alike are being hit in every direction by the impact of the crisis. The recession makes it tougher for people to pay their mortgages, and the continuous drop of home prices have left many borrowers ‘underwater’, putting them in the position of owing more than the value of their properties, ...
  6 days ago

• Greece bailout talks leaves markets cautious

  
  4unews — Authority: 147
  LONDON – Financial markets were cautious Friday ahead of another round of debt-reduction talks between Greece and its private creditors that could determine whether Europe’s debt crisis flares up again. While meeting with debt inspectors from the European Union, the European Central Bank and the International ...
  1 week ago

• European debt crisis live: Critical Greek debt deal talks continue

  
  top99news - breaking news from the world top newspapers — Authority: 163
  http://www.guardian.co.uk European debt crisis live: Critical Greek debt deal talks continue European markets set to rise and the euro push higher on the IMF’s plans and hopes that a Greek debt deal can be done8.03am: The troika will deliver its latest report on the progress of Ireland’s bailout ...
  1 week ago

• TIPSTER: The Most Important Thing In The World… Is China

  
  Kudrna's Stock Market Talk — Authority: 114
  Quote of the Day: I’m very optimistic on China, the key challenge for China here is the structural rebalancing that was outlined 9 months ago with the passage of the 12th  5 year plan – to move from... [[ This is a small excerpt only. Visit KSMT for Full Articles, Stock Conversation, Live Chat, NEW Stock Market ...
  1 week ago

• Britain faces £17.5 billion bill as IMF boosts bailout fund to $1 TRILLION… and World Bank warns of return to 2008/09 recession

  
  top99news - breaking news from the world top newspapers — Authority: 163
  http://www.dailymail.co.uk Britain faces £17.5 billion bill as IMF boosts bailout fund to $1 TRILLION… and World Bank warns of return to 2008/09 recession Britain’s bill for bailing out the eurozone is likely to soar to £65billion after the International Monetary Fund announced that it needed more ...
  1 week ago

• Forget the euro crisis… This country is leading the market now

  
  InvestmentWatch: Emerging markets, Real Estate, Personal finance, Business management, Politics, Economics — Authority: 148
  From The Reformed Broker: By which I mean that it is no longer necessary to be elated by European bailouts and despondent about European credit downgrades – because the market is now reacting to news and action out of China more than anything else. Europe is so 2011, the VIX barely registers so much as a grunt on ...
  1 week ago

• Chris Whalen: What’s The Volcker Rule Good For? Absolutely Nothing (VIDEO)

  
  The Daily Bail — Authority: 543
  Video - Chris Whalen on Tech Ticker - Jan. 17, 2012 If you want to fix the problems on Wall Street, do what Kyle Bass suggests: Eliminate off-balance sheet assets Bring back Glass-Steagall And most importantly, cap leverage at 10X --- On Wednesday, a subcommittee of the House Financial Services Committee is ...
  1 week ago

• ETF Headline Watch-January 18th 2012 (GLD, USO, XLF, XHB, VGK)

  
  Stock Market News & Stocks to Watch from StraightStocks — Authority: 150
  Wall Street Sector Selector has chosen Five ETFs which are directly related to today’s current events: In today’s news, notable headlines included that gold has reached a five week high, the Obama Administration announced a rejection of the...
  1 week ago

• Mario Monti promises Italy won’t ask Britain for bailout money

  
  top99news - breaking news from the world top newspapers — Authority: 163
  http://www.guardian.co.uk Mario Monti promises Italy won’t ask Britain for bailout money Rome will have eliminated deficit by 2013, insists Italian prime minister, as IMF warns it will need $500bn in extra fundingItaly’s prime minister, Mario Monti, has pledged that UK taxpayers will not be asked for ...
  1 week ago

• The Final Countdown

  
  The Daily Capitalist — Authority: 492
  “Under the circumstances, discussions with Greece and the official sector are paused for reflection on the benefits of a voluntary approach.” Debt talks “have not produced a constructive response.” —       The Institute of International Finance, January 13 2012.   “The war situation has developed ...
  1 week ago

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