$700 Billion Bailout

The $700 billion bailout was a psychological move by the US Treasury to show the world that the US banks are still strong

March 10, 2014 11:27 IST | India Infoline News Service
Title: $700 Billion Bailout
Author: Paul Muolo
Pages: 188, Paperback
Price: US $14.95 (This price is valid for India only)
Publication Date: November 2008
Published by Wiley

Written by Paul Muolo, $700 Billion Bailout (Wiley; 188 pages) is an analysis of Emergency Economic Stabilisation Act in the US. Paul Muolo is executive editor of National Mortgage News and co-author of the eye-opening Chain of Blame.

$700 Billion Bailout is written in simple and easy to understand language. It talks about the social, political and economic implications of the bailout. The book answers questions such as: What does the Bill say? Who is making decisions about how the $700 billion will be spent, and what does it mean now that the US government is investing directly in banks? Who’s footing the Bill? What is the impact on homeowners, businesses, retirement and tax policies in the US?

According to Mr Muolo, the $700 billion bailout was a psychological move by the US Treasury Henry Paulson to show the world that the US banks are still strong—and if you didn’t believe him then he’s going to invest even more money in them just to doubly prove his point.

To make the book comprehensive to the reader, the author elaborates each concept in detail. He also provides examples to provide a clear meaning of the concepts. For instance: In Chapter 1, Paulson’s press conference explains what is a bailout, will it help in solving the issue of credit crisis and much more. Similarly, he explains who are Fannie & Freddie, mortgage backed securities, subprime mortgages, credit default swaps, tax credit, yields etc.

The use of “Key Issue” helps to understand the core concept of the each issue. It helps the reader question whether the $700 billion bailout will help the country in solving the credit crisis. To maintain the link between the chapters, the author constantly makes references to the issues discussed in the previous chapters. For instance: In each chapter, he frequently makes reference to the $700 billion bailout. He also constantly mentions that out of total $700 billion, $125 billion would be used to buy stakes in large banks, another $125 billion for small and midsize banks etc. Mr Muolo makes use of words such as ‘I’, ‘we’, ‘you’, ‘yours’ etc to interact with the reader.

The book is not only comprehensible, but also alerts the readers on several occasions. For instance: In Chapter 2, while writing about ‘Interest Rates’, he alerts the reader by saying, “Predicting interest rates is a fool’s game…Most of the predictions I’ve heard—with some exceptions—turn out wrong.” Also, in case of realtors, in chapter 3, he says, “They want you to buy (house). Their commission depends on it.”

About Author

Paul Muolo is Executive Editor of National Mortgage News and coauthor of the eye-opening Chain of Blame, which has received very strong coverage in both print and online. His freelance work has appeared in the New York Times, the Washington Post, and Barron's. Muolo has been a guest financial expert on numerous media outlets, including CNN, CNBC, ABC, and Fox Business Network.

About Wiley:

Founded in 1807, John Wiley & Sons, Inc. is a legal family that has been a valued source of information and understanding for over 200 years, helping people around the world meet their needs and fulfill their aspirations. Since 1901, Wiley and its acquired companies have published the works of more than 450 Nobel laureates in all categories: Literature, Economics, Physiology/Medicine, Chemistry, Physics and Peace.

Our core businesses include scientific, technical, medical and scholarly journals, encyclopedias, books, and online products and services; professional/trade books, subscription products, training materials, and online applications and websites; and educational materials for undergraduate and graduate students and lifelong learners. Wiley's global headquarters are located in Hoboken, New Jersey, with operations in the U.S., Europe, Asia, Canada and Australia. The Company's website can be accessed at http://www.wiley.com. The Company is listed on the New York Stock Exchange under the symbols JWa and JWb.

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