Economy.?
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mh c y asked:
I have to write an essay on the Economy.
I have to write an essay on the Economy.
Why are companies getting the bailout?
how this effects the economy/regular people?
Any other info on the economy is good too.
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July 24th, 2010 at 10:12 am
companies are getting a bailout to avoid going bankrupt after investing in dangerous securities. They were promised huge payoffs from thier investments. This expected increase in revenue lead them to increase their own investments. When the securities failed, it left them without enough money to cover their investments. The bailout is supposed to be used to help them get out of the red
This effects regular people because it is a lot of money that they have to pay out of their pockets. It also reduces confidence in the market. If investors see that their companies need government help to get out of a tough spot it may come off as a bed thing for future investments.
I hope this helps.