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.
CONTEXT(Help)
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The Global Financial Crisis »The Global Financial Crisis
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How should the US and other governments respond? »How should the US and other governments respond?
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Measures to alleviate the immediate symptoms? »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 »Treasury Secretary has capital injection for stock option
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Contain the economic impact of the credit crunch »Contain the economic impact of the credit crunch
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Relieve the immediate credit crunch »Relieve the immediate credit crunch
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Abandoning free market principles »Abandoning free market principles
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Compounds $53 trillion US deficit »Compounds $53 trillion US deficit
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Doesn't punish bankers for mistakes »Doesn't punish bankers for mistakes
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Insufficient information available to make sound policy decision »Insufficient information available to make sound policy decision
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Involved extra $100bn of irrelevant sweetners »Involved extra $100bn of irrelevant sweetners
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Moral hazard »Moral hazard
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Printing more money just devalues the USD more »Printing more money just devalues the USD more
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Transfers a mass of toxic assets from banks to the government »Transfers a mass of toxic assets from banks to the government
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