borrowed money from China
AnswerTwo possible sources: Borrowing and Printing money.
The US government can borrow the money from individuals, either US citizens, foreigner individuals, or foreign governments. Problem is, US citizens don't have enough to lend (and if they had any sense, wouldn't do it anyway). So the vast majority of this debt will be held by foreign interests. China already holds a huge part of our debt. And Islamic nations are getting more and more of it. This will make matters much much worse.
Or the treasury can just print more money. $700 billion more to be exact. This will cause rampant inflation.
I say let the stock marketcollapse. What we're going through is simply a "correction". Sure, it's a giant correction, but it was a giant error that is being corrected. And that error was committed by the US government, forcing banks to hand out loans to people who couldn't afford to pay them back.
And the thing that really stinks about this is, whatever happens with the bailout, 20 years from now, when all the dust settles and the economy is back on its feet, some liberal politician will start moaning about how unfair it is that low-income families can't get loans to buy houses, and we're going to have to go through all of this again.
chrysler
It will solve the economic crisis that has affected the US and the whole world
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.
For Vietnam, that wasn't a bail out; that was defense spending. And US tax payers pay for everything.
Because our free market has failed, our republic has failed, and the will of the people is ignored by a corrupt government.
If the bailout package is able to successfully revive the US economy then the US government should cut spending on the bailout. But some financial experts feel this 700 billion may not be sufficient. If what they predict becomes true then the government would have to pump in more cash into the bailout package. This bailout cannot be left in midway because the future of the world and US economy lies predominantly on this bailout and people are hoping that this works out successful.
1. Bailout is a mechanism to strengthen banks' balance sheet so that their credit rating will not deteriorate thus not requiring to pledge additional asset to creditors. 2. It is also a mechanism to safeguard banks from panic withdrawal from depositors. Bailout comes at a cost (a very huge cost), in dollar term, it was estimated that the whole bailout plan will cost every man, woman and children in the US $2,300. For more information, visit: http://leonardatavism.blogspot.com/2008/09/some-thoughts-for-us-bailout-plan.html for
It is unclear the affect the bailout will have on GDP and unemployment. GDP growth has the biggest impact on employment so how the economy responds to the bailout is the critical factor, If credit markets loosen up and credit begins to flow again it will have a very positive impact on GDP growth. In that instance the impact of the bailout will be a reduction in unemployment.
A 29-billion-dollar non-recourse loan was made to J.P. Morgan back with MBS. See Wikipedia "Bear Sterns" for details.
The bill that was defeated in the Senate was a 14 billion dollar rescue plan for the automakers. The President has no power to overrule a bill that is defeated in Congress. The 17.4 billion dollar assistance to the automakers will be a low interest loan drawn from the 700 billion "bail out" fund already passed by both Houses in October.
1. Bailout is a mechanism to strengthen banks' balance sheet so that their credit rating will not deteriorate thus not requiring to pledge additional asset to creditors. 2. It is also a mechanism to safeguard banks from panic withdrawal from depositors. Bailout comes at a cost (a very huge cost), in dollar term, it was estimated that the whole bailout plan will cost every man, woman and children in the US $2,300. For more information, visit: http://leonardatavism.blogspot.com/2008/09/some-thoughts-for-us-bailout-plan.html for
He would do anything in his power to save America's economy. This contributor feels that Barack Obama's remarks about the $700 billion bailout were positive but incorrect.