BAILOUT

BAILOUT /ˈbeɪlaʊt/

I The selfless act of saving others’ economy or the unavoidable act of saving banks. II The fame of the word bailout came to Europe straight out of the US together with the crisis. 2k8’s overseas narrations clearly describe a fracture between Democrats and Republicans concerning the best way to handle the downfall of major national financial groups involved in the financial blackout. The responsibility for the failure of the financial market’s self-regulations was taken by the democratic side – with the promise of a fair redistribution of money between executioners and victims. Paradoxically, Republicans, namely Senator McCain, suggested an intervention of their favorite hand (see also Adam Smith), which should have punished those who irresponsibly invested their savings and later let the US economy resettle by itself. III The bailout burst into the European mediatic discourse, at first, in the form of loans to the bank system from sovereign state’s central banks and from the ECB. Later, bailout programs switched to billionaire parachutes for European economies from the IMF, the EC and the ECB (see also Troika), in exchange for public budget cuts, tax increases, austerity and neoliberal reforms, in order to put a patch on the bleeding states’ reserves in the aftermath of banks’ rescues. European bailout programs were ratified for Greece, Cyprus, Portugal, Spain and Ireland. By fall 2016, Spain and Ireland are the only two countries that seem on the way of recovering after their bailout programs. Once again, the different outcomes of these rescues illustrate how imprecisely designed is the PIIGS umbrella and how different the socio-economic situation is from country to country. IV Besides the financial meaning, the word bailout evokes three different realms: the one of surrender and abandoning, the one of danger and parachuting and the one of sinking and emptying. As a result, in economic terms the bailout, is a last chance, it is the desperate act of a government or a central bank to save its economy from collapse. When mass media audiences see the word bailout on a news banner, it is the equivalent of an “Eject! Eject!” red button on a pilot’s dashboard, a powerful transfer able to convey in the audience the sense of urgency needed to allocate billions of Euros.

// synonyms: “too big to fail”, mercy, parachuting, deserting, emptying, conditions, BN, TN
// antonyms: bail-in, differentiation, refusal

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