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H.R. 1424, the Emergency Economic Stabilization Act of 2008.

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H.R. 1424, the Emergency Economic Stabilization Act of 2008.
In the wake of the United States 2008 financial crisis, the government became pressured to act and the federal government needed a way to help. In late 2008 HR1424, commonly known as the Emergency Economic Stabilization act, was proposed to congress, and signed by president bush. This legislation was a way to remove the burden from banks, whom during the mortgage crisis, came strained on resources and was not able to keep lending as their clients fell victim to foreclosure. This bill’s intention was to take on bad loans and other assets so the bank could continue lending as normal. This legislation displays and example of top down government where government, supported by interest groups and PAcC’s, create laws for their own personal interests rather than the peoples need for such laws.
Prior to the passage of HR 1424 in October, There was a bill entitled HR 3997. The original proposal was submitted to the the House Representatives with the purpose of gaining the authority to purchase bad assets, reducing uncertainty regarding the worth of the remaining assets, and restoring confidence in the credit markets (OpenCongress) This bill failed to gain any momentum and failed passage by a 205 - 228 margin on September 2008. Its failure seemed to be more of a question of incentives over morals. Less than one month after the failure of HR 3997 to gain momentum, a similar bill was written and presented. HR1424, also known as the Emergency Economic Stabilization Act of 2008.Completely rewrote the previous bill and was introduced by Patrick Kennedy of Rhode Island with 274 cosponsors. This time the bill was easily passed by a 263-171 vote. Where generally, the provisions of H...

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