US $700B bailout VS UK 87.5B bailout
The US $700B and the UK 87.5B bailout is a rescue plan to establish a toxic debt dumpster to purge the banks of bad depts or to help purge bad assets from the banking sector, that will cost the government hundreds of billion dollars.
The Philippines daily inquirer (September 22, 2008) speaks that the US $700B bailout is the largest rescue since 1928 crash. The Bush administration has asked Congress for authority to buy $700 billion in toxic assets clogging the US financial system and threatening the economy as negations began on the largest bailout since the great depression.
This kind of financial crisis has many effects, not only to one person but to all. One huge concern is that the Lehman bankruptcy will probably trigger even tighter credit’s making it more difficult for everyone from large companies to small businesses to American home buyers to borrow money. And Pres. Bush said that people are beginning to doubt in our system, people were losing confidence in our financial system, it is so hard to get back peoples trust in ones company that has been failed.
Distressed banks and financial institutions in the United States might decide to pull out their investments in emerging economies as a way to boost liquidity. The market’s mood has shifted from panic to euphoria as the financial froze up. There were also worries that Lehman’s problems would infect other financial companies and spread to global stock markets, further harming the US and global economies.
Sources:
- Philippine Daily Inquirer (Sunday, Sept. 21, 2008/ 17 sections/vol.23/no.288)
- Philippine Daily Inquirer (Wednesday,Sept.17,2008/8 sections/vol.23/no.284)
- Philippine Daily Inquirer (Monday, Sept. 22,2008/13 sections/vol.23/no.289)
The US $700B and the UK 87.5B bailout is a rescue plan to establish a toxic debt dumpster to purge the banks of bad depts or to help purge bad assets from the banking sector, that will cost the government hundreds of billion dollars.
The Philippines daily inquirer (September 22, 2008) speaks that the US $700B bailout is the largest rescue since 1928 crash. The Bush administration has asked Congress for authority to buy $700 billion in toxic assets clogging the US financial system and threatening the economy as negations began on the largest bailout since the great depression.
This kind of financial crisis has many effects, not only to one person but to all. One huge concern is that the Lehman bankruptcy will probably trigger even tighter credit’s making it more difficult for everyone from large companies to small businesses to American home buyers to borrow money. And Pres. Bush said that people are beginning to doubt in our system, people were losing confidence in our financial system, it is so hard to get back peoples trust in ones company that has been failed.
Distressed banks and financial institutions in the United States might decide to pull out their investments in emerging economies as a way to boost liquidity. The market’s mood has shifted from panic to euphoria as the financial froze up. There were also worries that Lehman’s problems would infect other financial companies and spread to global stock markets, further harming the US and global economies.
Sources:
- Philippine Daily Inquirer (Sunday, Sept. 21, 2008/ 17 sections/vol.23/no.288)
- Philippine Daily Inquirer (Wednesday,Sept.17,2008/8 sections/vol.23/no.284)
- Philippine Daily Inquirer (Monday, Sept. 22,2008/13 sections/vol.23/no.289)
1 comment:
How about the UK bailout? What is its history? pros and cons? effects?
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