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Economy.....................?
I have to communicate with 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.
companies are getting a bailout to leave alone going bankrupt after investing in dangerous securities. They were promised huge payoffs from thier investments. This expected snowball 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 reputed 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 prerequisite government help to get out of a tough spot it may come off as a bed thing for future investments.
I hope this helps.
On the whole
By