America And The Free Market

2448 Words Apr 12th, 2016 10 Pages
Dan Palazzo
America and the Free Market
7 April, 2016
Bailout INC In 2008, the United States went through one of the most significant economical period in history. The housing market and banks started to fail and people were unable to pay off their loans on the houses. This lead to a giant need for government intervention in determining which investment banks and corporations were worthy of being considered “too big to fail”. If they were in this category, the government would supply them with the funds necessary to not go bankrupt. Most of the time, the corporations would put this money towards consolidating their balance sheets, rather than solving the problems. This paper looks in depth into the 2008 financial crisis: the course of events that lead to such a disastrous period, classification of too big to fail companies, as well as what the bailouts issued mean to America’s free market. It is my belief that bailouts of corporations which are believed to be too important to the economy directly goes against what the beliefs of a free market are. The Federal Reserve is responsible for monitoring, analyzing, and stabilizing US financial institutions. They are the ones that make sure that nothing is developing within the economy that would potentially cause a significant problem. They are the most powerful and prestigious economic institution on the globe. Without the Federal Reserve, there would be no regulatory section that would cover the entire US economy.…

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