As the Unites States economy seemed to grind to a halt with the growing credit crunch, and more and more large banks and other financial institutions collapsed, then-Treasury Secretary Henry Paulson proposed a bailout plan which would have the U.S. government purchase the bad mortgage-backed securities from the private financial sector, which in theory would allow the banks and other mortgage-holders to regain financial health and to then begin offering credit to businesses and individuals.

The U.S. House of Representatives failed to pass this plan in a vote on Sept. 29, 2008.

On Oct. 3, 2008, the House approved a modified plan, (Public Law 110-343) and the bill was signed into law by President George W. Bush later that same day. The Troubled Asset Relief Program (TARP) is the largest component of the government's measures in 2008 to address the subprime mortgage crisis.

 

Since the change in Administrations, the economic crisis has only worsened , to the point where the resulting economic downturn is often referred to as "The Great Recession." President Obama has dealt with a variety of major corporate bankruptcies, such as General Motors, and is using the TARP stimulus funds in an attempt to re-invigorate the economy.

Business, Money, and Economics Bookstore

 

Mortgage, Credit, and Stock Market Crash Events and Offices

--Timeline of Events

--Automobile Industry Bailout

--The Office of Financial Stability is a new office within the Office of Domestic Finance of the United States Treasury Department created by the Emergency Economic Stabilization Act of 2008 to operate the Troubled Assets Relief Program (TARP).

 

Political and Economic Personalities Involved in the 2008 Mortgage Crisis and Bailout

Biography of Treasury Secretary Henry M. Paulson, Jr.

Biography of Assistant Treasury Secretary Neel Kashkari--Recently named to oversee the $700 Billion bailout.

James H. Lambright was named to serve as the interim Chief Investment Officer for the Troubled Asset Relief Program (TARP).

 

Documents Related to the 2008 Mortgage Crisis and Bailout

President Bush Discusses the Bipartisan Economic Growth Agreement--Oct. 3, 2008

Paulson Statement on Emergency Economic Stabilization Act--Oct. 3, 2008

Text of the Emergency Economic Stabilization Act of 2008 --passed by the Senate on October 3, 2008 (PDF format)

The original Henry Paulson Bailout Plan of Sept. 21, 2008

President Bush Press Conference of July 15, 2008

Documents from Congressman Dennis Kucinich on the Mortgage Crisis and Bailout

Links and Resources on the Mortgage Bailout

Dollar Staggers as U.S. Unleashes Cash Flood, Deficit--Bloomberg, Dec. 15, 2008

Mortgage Meltdown: News About Subprime Mortgage Litigation and Legislation--Blog about TARP and the mortgage crisis

 

FDIC Seizes Three Banks, Expanding Loan-Relief Effort--Washington Post, Nov. 22, 2008

Foreclosures to Be Suspended Over Holidays--Washington Post, Nov. 20, 2008

Lawmakers Grill Kashkari on Changes in TARP Plan--Wall Street Journal, Nov. 14, 2008

Bush Signs Rescue Bill After House Vote--NYTimes, Oct. 3, 2008

The No Votes: Details on the Republican and Democratic representatives who voted against the $700 billion financial bailout plan.--NYTimes, Sept. 29, 2008

 

Proposed Bailout of United States Financial System - Wikipedia article

House Rejects Bailout Package, 228-205; Stocks Plunge - NYTimes.com

 

FACT SHEET - Proposed Treasury Authority to Purchase Troubled Assets--September 20, 2008. hp-1150. FACT SHEET: Proposed Treasury Authority to Purchase Troubled Assets.

Bailout Bill Fails in House Vote Amid Defections in Both Parties - WSJ.com

 

Treasury Relents on Key Points - WSJ.com

NoBailout.org - No Mortgage Bailout!

MarketWatch:Bailout--Real-time financial news, personal portfolio tracking, stock market quotes, expert commentary, and personal finance features.

Stop The Housing Bailout!--Stop the housing bailout and Stop the mortgage bailout.

What This Bailout Means to You--The Motley Fool

 

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