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Finance: What is a Bailout? 15 Views
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Description:
What is a Bailout? Bailouts happen when a company is suffering huge losses and is about to go out of business. Some entity gives the failing company a loan, investment, or straight cash in order to help them avoid going out of business.
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Transcript
- 00:00
Finance allah shmoop what is a bailout I'm sinking Yeah
- 00:08
this poor guy needs a bailout he's general motors in
- 00:11
two thousand nine he's greece pretty much always he's illinois
- 00:16
in california at some point this next decade Well a
- 00:19
bailout generally refers to a more well heeled well financed
Full Transcript
- 00:24
the mama figure coming in to pay the bills of
- 00:27
the derelict deadbeat who misstepped and well now can't make
- 00:31
payroll The notion of a bailout is a politically charged
- 00:34
one You can imagine that ford wasn't very happy about
- 00:38
gm getting such a gift when obama bailed them out
- 00:41
courtesy of a gift from us taxpayers Yes the bailout
- 00:45
save gm worker jobs for a while but it also
- 00:48
said a frightening precedent in this country like what happens
- 00:51
when the next company manages itself poorly Well the feds
- 00:55
come in and just bail it out as well with
- 00:58
no real consequences Well given the ford competes directly with
- 01:01
gm and ford got no bailout how would you guess
- 01:05
those workers feel Yeah henry is turning in his grave
- 01:09
A bailout of greece revolves around its role as a
- 01:12
kind of edgy international chess piece like right between the
- 01:15
west and the east kind of like if the west
- 01:18
doesn't bail out greece will china russia saudi arabia will
- 01:22
greece is kind of the new cuba in that chess
- 01:25
game as the u s and russia tussled over the
- 01:27
management of cuba dot com in the sixties you know
- 01:30
bay of pigs and all that but greece well simply
- 01:33
put does not manage itself well It allows for ah
- 01:36
highly unionized thirty two hour work week with six to
- 01:40
eight weeks of vacation a year And greece has a
- 01:42
history of corruption where the wealthy have easy legal vehicles
- 01:46
behind which to hide their earnings so they pay little
- 01:49
or no taxes Is it fair to say other countries
- 01:53
who work their butts off to just keep bailing out
- 01:56
greece Well then we have california and illinois states both
- 02:00
likely to go bankrupt in the next decade or so
- 02:02
swimming under massive government pension liabilities Is it fair to
- 02:06
take money from the disciplined balanced budget states like utah
- 02:10
and wyoming in florida and texas and just give that
- 02:13
money to the derelicts in california and illinois Why would
- 02:16
that be fair utah florida and texas and the gang
- 02:19
Don't buy everything they want They respect their budgets but
- 02:23
some states don't When it's your tax dollars being given
- 02:27
over in a bailout and it'll be interesting to track
- 02:30
how you feel Politically everyone loves to bail out cute
- 02:33
looking derelicts with other people's money When it's your own
- 02:37
maybe not so much looking at hypocrisy Dot com khun 00:02:41.62 --> [endTime] khun lead by that website Oh
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