During the fall of 2008 the financial stability of the United States faced substantial obstacles as the financial industry was shocked by sudden developments to the world's financial system. Uncertainty tainted lots of recently created financial vehicles resulted in extreme movements in prices around the globe.
The effect was so destructive that a long time financial titan, Lehman Brothers, was forced to file for bankruptcy. A couple other major banks avoided the same fate only by being bout out by competitors at a fraction of the price they would have gotten not a short time before.
Many pundits suggested that the situation was so dire that a depression similar to that of the beginning of the 20th century was not only a possibility but even probable. As a result the government felt obligated to do something and the Senate quickly passed an economic stimulus package to help the economy avoid a devastating slow down.
Congress has called for two types of cash to be supplied; one was meant for the banks and related financial companies and the other was for the greater economy. The purpose of the bill was twofold; quickly decrease the current risks to the banking system and then create steady stimulation to the economy to lessen the effect of a recession.
The bill was quickly enacted with subsequent administrations and congresses increasing the size of a number of the stimulus packages first implemented. The banks benefited from programs such as the Troubled Asset Relief Program that helped them to rid themselves of loan paper that had turned into a drain on their financial books.
Congress also maintained their commitment to helping out the financial companies by developing policy in concert with them and other distressed countries around the globe. Things such as tax rates and fiscal policy were designed to help strengthen the banks.
The other sectors of the US economy were also budgeted funding in the federal stimulus grants package. Large sums of cash were budgeted to promote growth in many industries including environmental, manufacturing, and international development.
Money was also used to start offering education resources to assist Americans out of work because of the financial slowdown. Public money was dispensed around the US economy by several paths such as extended unemployment benefits and subsidies.
The government's bid to stimulate the domestic economy to prevent disaster was a highly debated choice at the start and still is now. Some thought the dangers to the economy were not as bad as some economists suggested while other detractors concurred with the possible risks but thought the cure ineffective. Whichever opinion may ultimately be proven accurate it will most likely be several years and billions spent before anybody can be sure of which. - 29954
The effect was so destructive that a long time financial titan, Lehman Brothers, was forced to file for bankruptcy. A couple other major banks avoided the same fate only by being bout out by competitors at a fraction of the price they would have gotten not a short time before.
Many pundits suggested that the situation was so dire that a depression similar to that of the beginning of the 20th century was not only a possibility but even probable. As a result the government felt obligated to do something and the Senate quickly passed an economic stimulus package to help the economy avoid a devastating slow down.
Congress has called for two types of cash to be supplied; one was meant for the banks and related financial companies and the other was for the greater economy. The purpose of the bill was twofold; quickly decrease the current risks to the banking system and then create steady stimulation to the economy to lessen the effect of a recession.
The bill was quickly enacted with subsequent administrations and congresses increasing the size of a number of the stimulus packages first implemented. The banks benefited from programs such as the Troubled Asset Relief Program that helped them to rid themselves of loan paper that had turned into a drain on their financial books.
Congress also maintained their commitment to helping out the financial companies by developing policy in concert with them and other distressed countries around the globe. Things such as tax rates and fiscal policy were designed to help strengthen the banks.
The other sectors of the US economy were also budgeted funding in the federal stimulus grants package. Large sums of cash were budgeted to promote growth in many industries including environmental, manufacturing, and international development.
Money was also used to start offering education resources to assist Americans out of work because of the financial slowdown. Public money was dispensed around the US economy by several paths such as extended unemployment benefits and subsidies.
The government's bid to stimulate the domestic economy to prevent disaster was a highly debated choice at the start and still is now. Some thought the dangers to the economy were not as bad as some economists suggested while other detractors concurred with the possible risks but thought the cure ineffective. Whichever opinion may ultimately be proven accurate it will most likely be several years and billions spent before anybody can be sure of which. - 29954
