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As of today (Oct 2, 2008) it is too early to say the plan failed. The bill as presented in the House of Representatives on September 29, 2008 did not have the necessary votes to pass. Various reasons have been given for its initial failure to pass, including the unpopularity of the bill among residents (as gauged by polls) and the lack of oversight. However, a revised bill now has passed the Senate as of Oct 1, 2008. See "bailout deal" under Wikipedia for additional details.
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How big is the stimulus package?
The initial bailout plan was for nearly $700 billion. The latest stimulus package is another $250 billion The aim of the bailout plans, stimulus packages etc are to purchase bad assets, reduce uncertainty regarding the worth of the remaining assets, and restore confidence in the credit markets. Below are some reasons for such packages: 1. To Stabilize the economy 2. Improve Liquidity 3. Improve Investor Confidence 4. Reduce the impact of the financial crisis on the US Economy and GDP.
What does the federal bailout do?
Called The Emergency Economic Stabilization Act of 2008 (or more colloquially the "Bailout Bill"), it provided the Treasury Department with $700B help the United States financial system by purchasing troubled assets (the major part of the bailout is called TARP, the Troubled Asset Relief Program) and providing loans for struggling companies. The links below will provide a summary and the full text of the bill. It increases the national debt. If the benefits go to the wealthy it will further destabilize the economy. The root cause of the economic crisis in the U.S. is an artificial redistribution of wealth and a concentration of wealth among a small percentage of the population. Middle and Lower class people where seduced into believing they could afford a home, mortgage brokers pulled the rug out from under them and we are still reeling from the shock. Congressman Kucinich has referred to the 700 billion bill as "Racketeering on a scale this country has never seen before". That is the best description of the "700 billion USD plan" I have seen to date. See link below. Much of it is still evolving. Suggest you review wikipedia under bailout plan. See: http://en.wikipedia.org/wiki/Bailout_deal
How do Republicans and Democrats differ on their views of the US government's 700-billion-dollar bailout?
Among the congressmen, there doesn't seem to be any clear line that either party follows. 65 republicans voted yes, 133 voted no. 140 democrats voted yes, 95 voted no. So, there is no clear attitude, but as you can tell from the voting, the democrats in Congress are generally a bit more positive on the bailout.
Why did the government bailout?
The Emergency Economic Stabilization Act of 2008 commonly referred to as a bailout of the U.S. financial system, is a law authorizing the United States Secretary of the Treasury to spend up to US$700 billion to purchase distressed assets, especially mortgage-backed securities, from the nation's banks. The Act was proposed by U.S. President George W. Bush and Treasury Secretary Henry Paulson during the global financial crisis of September-October 2008.The purpose of the plan was to purchase bad assets, reduce uncertainty regarding the worth of the remaining assets, and restore confidence in the credit markets.The Reasons for the Bailout Package:1. To Stabilize the economy2. Improve Liquidity3. Improve Investor Confidence4. Reduce the impact of the financial crisis on the US Economy and GDP.
Cons of the 700 billion dollar bailout bill?
This plan can be described as a risky investment, as opposed to an expense. The MBS within the scope of the purchase program have rights to the cash flows from the underlying mortgages. As such, the initial outflow of government funds to purchase the MBS would be offset by ongoing cash inflows represented by the monthly mortgage payments. Further, the government eventually may be able to sell the assets, though whether at a gain or loss will be known only in future. * MBS - Mortgage Backed Securities
Define the 700 billion US bailout plan?
Much of it is still evolving. Suggest you review wikipedia under bailout plan.
Do Americans have any vote in this 700 billion bailout?
Directly NO Indirectly YES (Because the people elected by the citizens of USE were the ones who created this bailout plan)
Is the bailout plan a 750 billion plan?
minus the 50 and you got $700 million because the legislature didn't want to go pass it.
What is Hank Paulson's connection to the US government's 700 billion dollar bailout?
Henry (Hank) Paulson is the Treasury Secretary of the United States. He was formerly the CEO of Goldman Sachs. The massive $700 billion dollar bailout is his plan to help save the failing banks and lending institutions in the United States.
Who needs the 700 billion bailout plan?
1. The banks and financial institutions in US 2. The US Economy 3. The world Economy In short - All of us.
What date was the 700 billion bailout passed?
The bailout was passed by the House of Representatives and signed into law by the president on Friday October 3, 2008.
What is the cost of government bailout?
Congress says 700 billion dollars, but no one knows for sure.
What will the 700 billion dollar bailout solve?
It will solve the economic crisis that has affected the US and the whole world
Federal government bailout plans of major corporations are just?
A very good question. Not an easy one to answer. Many legislators voted against the 700 billion bailout on the basis that it was not the purpose of government. President Bush stated that ordinarily, it would be his policy just to let corporations fail than to bailout them out. However, he supported the bailout plan on the basis that to do nothing could put the country in a long term depression. I suggest that those who wish to express their opinion use the "discuss" option, rather than continue to add to this answer.
What was the final vote total on the 700 billion bailout plan?
In the House: 263 Yeas and 171 Nays. In the Senate: 74 Yeas and 25 Nays. Adding links to full list of votes.
Why did the 700 billion buyout fail?
It hasn't failed yet buddy... This bailout is not a magic pill that will solve everything overnight. It has just begun a couple of months back and we need to wait for a few months to start seeing the effects.
What is the bailout plan?
The initial bailout plan was for nearly $700 billion. The latest stimulus package is another $250 billion The aim of the bailout plans, stimulus packages etc are to purchase bad assets, reduce uncertainty regarding the worth of the remaining assets, and restore confidence in the credit markets. Below are some reasons for such packages: 1. To Stabilize the economy 2. Improve Liquidity 3. Improve Investor Confidence 4. Reduce the impact of the financial crisis on the US Economy and GDP.
