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bailout

A bailout is financial assistance provided to a struggling organization, often a large corporation or government, to prevent it from failing. This help can come in the form of loans, grants, or other financial support and is usually funded by the government or other financial institutions. The aim is to stabilize the economy, protect jobs, and maintain public confidence. Bailouts often come with conditions, such as restructuring or oversight, to ensure responsible use of funds and to prevent future crises.

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    A bailout occurs when a government or financial institution provides financial assistance to an organization or sector in distress, often to prevent its failure and protect the broader economy. This support typically comes in the form of loans, grants, or purchasing assets. Bailouts are often controversial, as they can lead to debates about accountability, the use of taxpayer money, and the implications for market behavior. They are most commonly associated with struggling banks or large corporations during economic crises, like the 2008 financial crisis, when significant interventions were necessary to stabilize the financial system.