Wall Street bailout

The Wall Street bailout refers to government financial assistance provided to banks and other financial institutions during the 2008 financial crisis. When these institutions faced insolvency due to risky investments and mortgage defaults, their failure threatened the entire economy. To prevent a deeper recession, the U.S. government intervened with emergency funds, primarily through the Troubled Asset Relief Program (TARP). This bailout aimed to stabilize the financial system, restore credit flow, and protect jobs and savings. While it was controversial, many economists argue it was necessary to avert a far worse economic collapse.