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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...mirez, Carlos D. "The $700 Billion Bailout: A Public-Choice Interpretation." Thesis. George Mason University, n.d. Print.
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United States. Congress. GPO. Emergency Economic Stabilization Act of 2008 and Other Related Tax Acts, H.R. 1424 Bill Texts, Joint Committee on Taxation Technical Explanations and House and Senate Report. New York, NY: Thomson Reuters/RIA, 2008. Print.
"U.S. Congress - H.R.3997 Heroes Earnings Assistance and Relief Tax Act of 2007." OpenCongress. OpenCongress.org, 29 Sept. 2008. Web. 03 Dec. 2013.
Instead of the current administration making a swift and decisive action to deal with these insolvent institutions, there were many bureaucratic attempts to delay action so that the problems would not become a polit...
Liberto, Jennifer. "Obama's vetoes measure to speed foreclosures ." CNNMoney - Business, financial and personal finance news. Cable News Network, 7 Oct. 2010. Web. 12 Sept. 2011. .
The Consolidated Omnibus Budget Reconciliation Act (COBRA) supports workers, who have lost the right to their health benefits, so that they can keep their employer-sponsored group health plan in force. The need for continued insurance coverage is necessary when coverage is interrupted due to the loss of a job, reduced working hours, death of the insured employee, divorce or even other circumstances that affect a person’s life. A person who qualifies for the group health benefit is usually expected to pay for that premium. The employer may increase the premium up to 102 percent, which is allowed under the provisions of COBRA. The law applies to all employer-sponsored group plans who have 20 and above employees and urges them to ensure an extension of the health coverage that is temporary (Magill, 2009).
A “Financial Crisis”, an “Economic disaster on a scale few nations have ever experienced”(1), the “Great Recession”, the “Lesser Depression”, the “Long Recession”, the “Global Recession of 2009”(2) and the “Financial Implosion”(3) are all expressions used to describe the economic situation the United States found itself in 2012. Louis Michael Seidman, a Harvard graduate and Carmack Waterhouse Professor of Constitution Law at Georgetown University Law Center, referred to it as “fiscal chaos”. It is Professor Seidman’s belief that the cause of this great chaos is the “archaic, idiosyncratic and downright evil provisions” of the Constitution. Seidman wrote an article in the New York Times entitled, “Let’s give up on the Constitution”, and argues, due to his personal philosophy, that the Constitution should be abandoned. (4) Seidman fails to acknowledge poor fiscal banking policy, lending to non-qualified borrowers, government bailout of private corporations or perhaps the repeal of the Glass Steagall Banking Act (5) as the sources contributing to the financial crisis. Instead, he places the entire blame on the founding fathers. In spite of Seidman’s ridiculous quibbles, the Constitution should be up held to maintain both the solidity and freedom the United States offers its citizens.
The Dodd-Frank Wall Street Reform and Consumer Protection Act brought the most significant changes to financial regulation in the United States since the reform that followed the Great Depression. It made changes in the American financial regulatory environment that affect all federal financial regulatory agencies and almost every part of the nation’s financial services industry. Like Glass-Steagall, the legislation passed after the Great Depression, it sought to regulate the financial markets and make another economic crisis less likely. Banks were deregulated in 1999 by the Gramm-Leach-Biley Act, which repealed the Glass-Steagall Act and essentially allowed for the excessive risk taken on by banks that caused the most recent financial crisis. The Financial Stability Oversight Council was established through the Dodd-Frank Wall Street Reform and Consumer Protection Act and was created to address the systemic risks in the United States financial system and to improve coordination among financial regulators.
The American Recovery and Reinvestment Act was signed into law by President Obama on February 21, 2009. The law had three major goals which were all aimed at stimulating a sluggish US economy. The first goal was to create new jobs and save existing ones by tax credits for hiring new employees. The second goal was to spur economic activity and investment in long term growth by increasing the amount of business asset that could be acquired by companies while allowing for immediate deductions for the cost of the assets as well as numerous tax credits for individuals and businesses. The third goal was to foster unprecedented levels of accountability and transparency in government spending by requiring recipients of recovery act funds to post acknowledgements on the Recovery.gov website.
Since the Welfare reform law was introduced in 1996 it has impacted American society greatly. The new welfare policy, named the Temporary Assistance to Needy Families (TANF), replaced the Aid to Family and Dependent Children (AFDC) program; they have five known differences that only affect the ones who need the assistance. Critics argue that the TANF has negatively impacted the society while some argue that it has not. Linda Burnham, author of “Welfare Reform, Family Hardship & Woman of Color,” asserts that “welfare reform has increased the hardship faced by many women leaving welfare for work and their movement into low-wage jobs, exposes them to higher level of housing insecurities, homelessness, food insecurity, and hunger.” She also argues that women of color “are especially vulnerable to the negative impact of welfare reform” (38).
Both stories, Response to Executive Order 9066 and "Mericans", establish a common American Identity theme. The main idea of these two stories is how people may or may not relate to their cultures. Both are narrated by teenage girls, and both establish a common theme that your appearance does not define you.
In 1997 the Clinton Administration signed into law the Balanced Budget Act. One of the key provisions of this act was reduction in Medicare payments to health care providers. The reductions threw a health care system that was essentially in equilibrium into turmoil.
...avoiding even deeper collapse of the global GDP and of employment. The government also created the Troubled Asset Relief Program (TARP), for the establishment and administration of the treasury fund, in an effort to control the ongoing crisis.
In October of 1929, the American economy took a huge hit from the stock market crash. Since so much people had invested their money and time in the banks, when the banks closed many had lost all of their money and were in the deep poverty. Because of this, one of my first actions of the New Deal was the Federal Deposit Insurance Corporation (FDIC). Every bank in the United States had to abide by this rule. This banking program I launched not only ensured the safety and protection of deposits made my users of banks, but had also restored America’s faith in banks, causing people to once again use banks which contributed in enriching the economy. Another legislation I was determined to get passed...
The "subprime crises" was one of the most significant financial events since the Great Depression and definitely left a mark upon the country as we remain upon a steady path towards recovering fully. The financial crisis of 2008, became a defining moment within the infrastructure of the US financial system and its need for restructuring. One of the main moments that alerted the global economy of our declining state was the bankruptcy of Lehman Brothers on Sunday, September 14, 2008 and after this the economy began spreading as companies and individuals were struggling to find a way around this crisis. (Murphy, 2008) The US banking sector was first hit with a crisis amongst liquidity and declining world stock markets as well. The subprime mortgage crisis was characterized by a decrease within the housing market due to excessive individuals and corporate debt along with risky lending and borrowing practices. Over time, the market apparently began displaying more weaknesses as the global financial system was being affected. With this being said, this brings into question about who is actually to assume blame for this financial fiasco. It is extremely hard to just assign blame to one individual party as there were many different factors at work here. This paper will analyze how the stakeholders created a financial disaster and did nothing to prevent it as the credit rating agencies created an amount of turmoil due to their unethical decisions and costly mistakes.
Sorry this article is so long but I thought it was a great article and wanted to share it. It makes some great points about loaning money to the government and the fact that when you loan the money them they rarely re-pay the principle, so they have to continue to pay the interest payments. It also goes into some detail about the relationship between the government and banks. The government doesn’t want to see banks fail because they want their sources of money to be strong. I also like the way this article describes how banks fail. It gives some good examples about those banks that fail due to bad debts and non repayment on loans.
The “bad” mortgages banks were writing, high interest rates, and world financial uncertainty were the main culprits to the financial crisis of 2008. “Some three years after the collapse of the financial industry, a bipartisan report from the Senate’s Permanent Subcommittee on Investigations has determined that banks, regulators and credit agencies ...
In 2008, the world experienced a tremendous financial crisis which is rooted from the U.S housing market. Moreover, it is considered by many economists as one of the worst recessions since the Great Depression in 1930s. After bringing a huge effect on the U.S economy, the financial crisis expanded to Europe and the rest of the world. It ruined economies, crumble financial corporations and impoverished individual lives. For example, the financial crisis has resulted in the collapse of massive financial institutions such as Fannie Mae, Freddie Mac, Lehman Brothers and AIG. These collapses not only influenced own countries but also international scale. Hence, the intervention of governments by changing and expanding the monetary and fiscal policy or giving bailout is needed in order to eliminate and control enormous effects of the financial crisis.