We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Did the government bail outs actually work - Term Paper Example

Comments (0)
Summary
A subhead has been added. We cannot possibly know your level or style of writing. You will have to adjust it according to your particular needs. Instructor name Date The Bailouts Worked: Like the Concept or Not A second Great Depression averted by government intervention It was late summer 2008…
Download full paper
GRAB THE BEST PAPER
Did the government bail outs actually work
Read TextPreview

Extract of sample
Did the government bail outs actually work

Download file to see previous pages... Though counter to his conservative ideology, Bush relented and worked with Congress to pass TARP, the Troubled Asset Relief Program, a move applauded by then presidential candidate Barack Obama. TARP and the auto bailout were and remain controversial topics. These were big gambles that, with all the associated drawbacks, paid big dividends. The bailouts saved a major American industry, the world from the Great Depression, the sequel and millions of people from living in “Bushvilles.” TARP, otherwise known as the “bank bailout,” was hurriedly implemented in 2008 as the world appeared on the threshold of a catastrophic financial meltdown. To stabilize financial markets, Congress authorized the Treasury Department to spend $700 billion, a move that caused widespread public outcry against the program. Most economists, however, understood that the move played a central role in rescuing the global economy. The Treasury didn’t use the entire amount though. It spent $470 billion on hundreds of banks, the auto industry and trying to help prevent home foreclosures. Treasury calculated that the total lifetime cost for taxpayers to be $17 billion in losses from the investments in the auto industry and auto finance companies plus a $46 billion loss from mortgage modification programs. “By any measure, TARP’s final tally will be far less than expected amid the crisis. But the program remains a big loser politically.” (“Credit,” 2010). According to a Treasury Department official Timothy Massad, Read Mthe federal government successfully stopped the 2008 financial crisis by “acting with overwhelming force and speed.” “The actions we took to stabilize the crisis worked. We really did arrest the panic,” said Massad. In addition, the financial regulatory reforms implemented the past three years have afforded economic policymakers enhanced tools to scrutinize systemic risk and better manage future crises. The U.S. government’s rapid and robust actions are in contrast with how European Union countries handled their banking crisis. “We’ve seen Europe struggle with its problems for two years. They haven’t been able to act as forcefully with their problems.” (Mowbray, 2011) To gain a little perspective, TARP and other government actions taken due to the financial crisis will cost taxpayers less than the savings and loan debacle during the 1980s, as a percentage of GDP (gross domestic product). Following the initial payout, President Obama continued the attempt to revive the financial system by implementing a scheme to help banks raise private money so that they can pay the government back. The Obama administration forced the 19 biggest banks to submit to a “stress test” to give potential investors confidence that those banks were solvent and reporting accurate financial records. Consequently, “banks have been able to raise enough private capital that today banks totaling only about 8 percent of bank holding companies by assets still have TARP money, down from 75 percent at the dawn of the crisis.” (Mowbray, 2011) Another element of the Obama administration’s reaction to the financial ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Team Work
Adapt cutting edge medical equipment to home use 4. Rental medical equipment 5. Provide hospitals and industries with a software that monitors all the equipment’s been used without the need of having someone there checking the device every day. Therefore, the software will be monitoring the functionality of the equipment 24/7.
27 Pages(6750 words)Term Paper
Should the top executives of the major banks that received bail-out money be allowed to receive large bonuses
The poor governmental regulations on banking sector also contributed to this disintegration. It is said that inefficient usage of monetary tools initiated by regulators was one of the main issues associated with the strategic failure of the banking industry, which intensified the scale of bailout.
5 Pages(1250 words)Term Paper
County Government
A country’s county helps determine the effectiveness and efficiency of the government. Indeed, a county may vary in its form and function, structure, size of population settling in a particular shire, county finance, and authority. Most probably a county government defines the kind of government a certain country has.
5 Pages(1250 words)Term Paper
Federal Government Housing Policies
In the recent period, numerous programs are being funded by the Congress in order to meet up to the housing requirements for the population that is poor and susceptible. The plans are mainly controlled by the Department of Housing and Urban Development (HUD).
6 Pages(1500 words)Term Paper
Municipal Government in Canada
6 Works Cited: 9 Running Head: Municipal Government in Canada Student’s Name :( First, Middle, Last) Instructor/Lecturer: (Dd, mm, yyyy) 1. Introduction Municipal Government in Canada is the local administration formed by provinces to offer services that are more effectively catered under local control.
6 Pages(1500 words)Term Paper
Should the US Taxpayer Bail Out the US Automobile Industry
However, the things have drastically altered in the current scenario and the US auto industry does not stand to pose a really rosy picture. The question that impinges upon the consciousness of the politicians, the taxpayers and the intelligentsia is that should the federal funds be used to bail out the US auto industry out of the doldrums supposed to be unleashed by the existing credit crunch The answer to such a query should certainly be no, as such an approach goes against the sound economic principles and the spirit of free market, which have been able to furnish the US economy with a competitive edge and a resilient sense of sustainability till date.
2 Pages(500 words)Term Paper
Liberty and Government
Liberty always is the first precedence of every individual, institution or organization and in case of governments it is legitimate object of "good government". Every government has both strong and weak points and same is the case with British government.
5 Pages(1250 words)Term Paper
Hedge Fund Bail Outs
B. Give the “normative” arguments against….. The normative argument for public money being used to bail out private financial institutions is that of being unfair to normal American homeowners forced to pay for their mistakes with their
2 Pages(500 words)Essay
Should the Government Bail out the Auto Industry
If auto industries file a chapter 11 petition or if it declares a lock-out, it will have greater implication on communities whose infrastructure and housing may become nearly unimportant. The automobile industry of USA currently is providing employment for more than
10 Pages(2500 words)Essay
Social Work

It addresses the complexity and the interrelationship between humans and their environment and as such focuses to problem-solving and bringing change to the society. Social work grew out of humanitarian ideals with an objective of improving people’s lives based on equality and dignity of all people.

3 Pages(750 words)Term Paper
Let us find you another Term Paper on topic Did the government bail outs actually work for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us