Please answer this question for me about financial crisis?

Describe the action taken by the federal government to strenghten the banking and financial markets in the united states? PLZ ANSWER!!!Please answer this question for me about financial crisis?The united states has put through a 700 billion bail out package. It's goal is to increase the liquidity of the US financial market and to buy bad debt back from banks. The bail out package is helping increase the liquidity in the US financial market primarily by purchasing preferred stock in some of the major banks that pays a set dividend. The banks will have the option to buy the shares back at par within the next few years. By giving the banks more money to work with, banks will have less fear about a bank run, when panicked consumers rush to their bank to remove all their savings, shutting the bank down. (Banks may Sell $1000 worth of loans for every $50 they have on deposit, so every time someone panic's and takes their money back from the bank, the bank may potentially have 2 foreclose mortgages to pay back their debts and obligations, thus forcing homeowners onto the street and further depressing home prices.)



The other thing the bail out package is supposed to do is buy bad debt from the banks. If the bank has a $500,000 mortgage it knows it will have to foreclose because the owners aren't capable of making the payments or just decide to walk away, the government may buy that bad debt from then. (I think that this side of the bail-out package is useless. Focus all the money on recapitalizing the banks so that as few mortgages as necessary are foreclosed and so that the banks can continue lending money to people and business's that need it.

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