Economic Stabilization Act of 2008

The Economic Stabilization Act of 2008 was a law enacted during the financial crisis to help stabilize the economy. It provided the U.S. government with the authority to purchase or insure certain financial assets and institutions, especially banks and mortgage lenders, to prevent their collapse. The goal was to restore confidence in the financial system, prevent further losses, and promote economic recovery. This act allowed the government to use taxpayer funds and tools to support struggling financial firms, aiming to prevent a deeper economic downturn.