The Bailout

A bailout is when the government or another organization provides financial assistance to a struggling company or bank to prevent its failure. This support can take the form of direct funding, loans, or guarantees, helping the institution stay afloat and avoid broader economic fallout. The goal is to protect jobs, safeguard the financial system, and stabilize the economy. Bailouts are often controversial because they involve public funds being used to rescue private entities, raising questions about fairness and moral hazard, but they can be crucial in preventing economic crises.