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The Emergency Economic Stabilization Act 2008

A law authorizing the US Secretary of the Treasury to spend up to US$700 billion to purchase distressed assets, especially mortgage-backed securities, from the nation's banks—enacated on 3rd October 2008.

For an overiew and relevant links see Wikipedia: The Emergency Economic Stabilization Act 2008.
RELATED ARTICLESExplain
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The Global Financial Crisis
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How should the US and other governments respond?
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Measures to alleviate the immediate symptoms?
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The Emergency Economic Stabilization Act 2008
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Treasury Secretary has capital injection for stock option
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Contain the economic impact of the credit crunch
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Relieve the immediate credit crunch
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Abandoning free market principles
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Compounds $53 trillion US deficit
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Doesn't punish bankers for mistakes
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Insufficient information available to make sound policy decision
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Involved extra $100bn of irrelevant sweetners
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Moral hazard
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Printing more money just devalues the USD more
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Transfers a mass of toxic assets from banks to the government
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Implement timely bans on short-selling
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Raise the federal minimum wage
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Apply effective measures learn from the Resolution Trust Corp
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Captial Injection in return for stock
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Compile and communicate information on toxic free companies
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Cordinated, substantial, rapid global reduction in interest rates
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Ease repayment terms on existing mortgage holders
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Encourage expansionary monetary and fiscal policy abroad
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Need to be perceived to be in control of the crisis
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Prevent the collapse of working capital
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Protect individual depositors in regulated banks
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Quantify the problem
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Recreate the Resolution Trust Corporation
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