Saturday, March 3, 2012

Bailout

In economics, a bailout is an act of loaning or giving capital to an entity (a company, a country, or an individual) that is in danger of failing, in an attempt to save it from bankruptcy, insolvency, or total liquidation and ruin; or to allow a failing entity to fail gracefully without spreading contagion.[1]

The above definition is from Wikipedia
In a book I was reading this morning it was defined as a rescue by the government or another entity of an irresponsible person or entity arising from a failure to follow rules or take reasonable precautionary steps.   He compares it to a parent who offers a late night meal to a child who refused to sit down for dinner. 

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