Can someone explain what the bailout means and what its about? With the stock market and with the General motors company.
by 
Blackberry.
ANSWERS: 2
-
Bailout refers to giving someone a hand to get out of trouble. It is in reference to boats to bail the water out in order that they may stay afloat. The same with the auto industry bailout so they can stay financially afloat. Mr Bill
-
basicly, the companies are going under because they have massive loans and nobody can afford the cars. so the government(U.S) is using its bank charter to creat money out of thin air, and giving it to the company to stop them going under. they are creating 50 billion dollars for the motor companies, but that means more money is chasing the same amount of products, so they get divalued. think of it this way, if they "bail out" a company and give them 100 billion, the money is being taken off the value of the dollar. So 100 billion comes to $400 dollars per person. people don't physically lose money, but the value of the money goes down so they end up paying for it.
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC