Bailout and Talk:Mayari: Difference between pages
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{{otheruses|Bail (disambiguation)}} |
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'''Bailout''' in economics and finance is a term used to describe a situation where a [[bankrupt]] or nearly bankrupt entity, such as a corporation or a bank, is given a fresh injection of [[Liquidity| liquidity]], in order to meet its short term obligations. Often bailouts are by governments, or by consortia of investors who demand control over the entity as the price for injecting funds. |
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'''Thank you Tala and Mayari and Bathala and Hanan. Thank you for your healing energy and support. Ronald Lee Vaught.--[[User:Ronald Lee Vaught|Ronald Lee Vaught]] 02:57, 17 November 2005 (UTC)''' |
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Often a bailout is in response to a short term cash flow crunch, where an entity with illiquid, but sufficient, assets is given funds to "tide it over" until short term problems are resolved. However, often bailouts are merely delaying the inevitable, as a government or investment structure attempts to avoid putting a large quantity of illiquid assets on the market, which would force other similar entities to write down their assets.{{Facts|date=August 2008}} |
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The bailing out of a corporation by government is controversial because bankruptcy can be seen as being caused by the failure to satisfy consumer demand; the bailing out is thus an instance of government intervention on the market overruling the will of consumers. "All this talk: the state should do this or that, ultimately means: the police should force consumers to behave otherwise than they would behave spontaneously."<ref>Mises, Socialism: An Economic and Sociological Analysis</ref> According to the [[Austrian School of Economics]] the appearance of monopolies can often be blamed on such acts of government intervention that preserve overstretched and badly managed corporations which market forces would have broken into smaller and more specialized companies.{{Fact|date=August 2008}} |
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Government bailouts of corporations are usually reserved for cases when a corporation is considered "[[Too Big to Fail policy|too big to fail]]" - justified by the argument that failure of certain corporations would cause unacceptable short term economic repercussions throughout the economy.<ref name='R000123'/> |
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==Cases== |
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U.S.A IS IN DANGER OF BAILOUT!!! |
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===World=== |
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*1992 - [[Sweden|Swedish]] banking rescue <ref>{{cite news | first=Carter| last=Dougherty| coauthors= | title=Stopping a Financial Crisis, the Swedish Way | date=2008-09-22 | publisher= | url =http://www.nytimes.com/2008/09/23/business/worldbusiness/23krona.html | work =[[The New York Times]] | pages = | accessdate = 2008-09-24 | language = }}</ref> |
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===US=== |
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*1979 - [[Chrysler]] |
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*1984 - [[Continental Illinois]]<ref name='R000123'>{{cite news | first=James | last=Surowiecki | coauthors= | title=Too Dumb To Fail | date=2008-02-31 | publisher= | url =http://www.newyorker.com/talk/financial/2008/03/31/080331ta_talk_surowiecki | work =[[The New Yorker]] | pages = | accessdate = 2008-09-21 | language = }}</ref> |
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*1989 - [[Savings and Loan Crisis]] |
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*1991 - [[Executive Life Insurance Company]], by states assessing other insurers |
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*1998 - [[Long Term Capital Management]], by banks and investment houses, not government (see LTCM page). |
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*2003 - [[Parmalat]] |
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*2008 - [[Bear Stearns]] |
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*2008 - [[Federal takeover of Fannie Mae and Freddie Mac|Fannie Mae and Freddie Mac]] |
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*2008 - [[American International Group]] |
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*2008 - [[Proposed bailout of U.S. financial system (2008)|Proposed bailout of the U.S. financial system]]<ref>[http://www.pbs.org/now/shows/438/index.html "Behind the Bailout"-- NOW on PBS]</ref> |
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== See also == |
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{{Wiktionary}} |
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*[[Bankruptcy]] |
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*[[Bubble (economics)]] |
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*[[Cash flow]] |
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*[[Debtor-in-possession financing]] |
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*[[Economic crisis of 2008]] |
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*[[Financial crisis]] |
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*[[Moral hazard]] |
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*[[Stock market crash]] |
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==References== |
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{{reflist}}jk |
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== Further reading == |
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*[http://www.economist.com/finance/displayStory.cfm?story_id=12286340&source=features_box1 "Financial crisis : Carping about the TARP : Congress wrangles over how best to avoid financial Armageddon"], [[The Economist]], September 23rd 2008 |
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[[Category:Financial actions]] |
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{{econ-problem-stub}} |
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[[de:Bail-out (Wirtschaft)]] |
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[[es:Rescate]] |
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*[http://www.pbs.org/now/shows/438/index.html "Behind the Bailout"-- NOW on PBS] 09/26/2008 |
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Revision as of 13:02, 13 October 2008
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Thank you Tala and Mayari and Bathala and Hanan. Thank you for your healing energy and support. Ronald Lee Vaught.--Ronald Lee Vaught 02:57, 17 November 2005 (UTC)