Bailouts

A bailout occurs when a government or organization provides financial assistance to a struggling business or economy to prevent collapse. The aim is to stabilize the situation, protect jobs, and maintain economic confidence. Bailouts can involve direct funds, loans, or other financial support. While they can help prevent larger crises, they often raise concerns about moral hazard, where recipients might take excessive risks knowing they might be rescued. Bailouts are typically controversial, balancing immediate economic needs against long-term implications for taxpayers and market behavior.