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”

 

• European Union Teams Leaders In Order To Concur With Long-lasting Bailout Finance

  
  — Authority:
  BRUSSELS ~ EUROPEAN teams leaders can put your signature to away on the long term recover finance to the pound zoom in a peak about Mon and therefore are anticipated to concur with well balanced finances principle throughout nationwide legislation, along with uncertain issues throughout Portugal sending your line a ...
  12 hours ago

• Another EU summit on the road to nowhere

  
  top99news - breaking news from the world top newspapers — Authority: 163
  http://www.telegraph.co.uk Another EU summit on the road to nowhere Telegraph View: the Government must focus on our own economic worries, not throw good money after bad in the EU bailout fund. published date:Mon, 30 Jan 2012 06:55:29 GMT
  12 hours ago

• Deutsche Bank – Making money from Distressed Assets | Bank Insight

  
  The Banking and Strategy Initiative — Authority: 124
  DB estimates that more than 480 bln to $100 bln of distressed assets turned over to hedge funds in 2009 and 2010 are choking funds that want to get into new investtments and assets and are stuck with a crisis legacy they do not need. The bank will start with a $500 mln fund with Rosebrook advisors to sponge up such ...
  13 hours ago

• Another EU summit on the road to nowhere

  
  top99news - breaking news from the world top newspapers — Authority: 163
  http://www.telegraph.co.uk Another EU summit on the road to nowhere Telegraph View: the Government must focus on our own economic worries, not throw good money after bad in the EU bailout fund. published date:Mon, 30 Jan 2012 06:55:29 GMT
  13 hours ago

• Cost Of Second Greek Bailout Raised To €145 Billion

  
  The Forex Trading System — Authority: 149
  When the first revision of the second Greek bailout to the tidy round number of €130 billion was announced, we scoffed, mockingly. Because a country which then had a 7% budget deficit, and now has a deficit that will be well in the double digits, and not to mention a banking system that is now hollow following tens ...
  1 day ago

• “One Step Away From PSI Deal” – Why Greeks & Troika Unhappy?

  
  Keep Talking Greece — Authority: 499
  Greece and its private creditors are apparently one step away from completing the voluntary Greek Bond Swap (PSI).  “We are one step away from PSI deal”, Greek Finance Minister Evangelos Venizelos said. “We are close to the finalization of a voluntary PSI”, head of Institute of International Finance ...
  1 day ago

• Greece Will Exit The Eurozone in March; Return to The Drachma

  
  Socyberty — Authority: 578
  Greek debt bailout negotiation keeps coming up like a bad penny.  There have been at least three major bailouts already, and all parties are getting tired of Greece’s lack of fiscal discipline.  To be fair, as Greek tries to implement austerity programs, tax revenue declines because austerity slows the Greek ...
  1 day ago

• Some Of The $132.9 Billion Own To Taxpayers From Bailout, Won’t Be Recovered

  
  Fortune Watch — Authority: 79
  U.S. taxpayers are still owed $132.9 billion by companies that benefited from the financial bailout and haven’t fully repaid. Some of that money will never be recovered, a government watchdog said. Big companies like General Motors and AIG, which benefited from the bailout, still owe U.S. taxpayers $132.9 ...
  1 day ago

• 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 ...
  2 days 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?
  3 days ago

• Obama’s Faux Populism Sounds Like Bill Clinton

  
  Truthdig: Drilling Beneath the Headlines — Authority: 699
  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
  4 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
  4 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: 470
  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 ...
  5 days ago

• Greek bailout update & is Portugal next?

  
  Forex Trading TV Video Blog — Authority: 101
  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 [...]
  6 days ago

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

  
  The Banking and Strategy Initiative — Authority: 124
  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 ...
  6 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 ...
  6 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.
  1 week 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 ...
  1 week 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, ...
  1 week ago

• Greece bailout talks leaves markets cautious

  
  4unews — Authority: 146
  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

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