What is the 2008 bailout?

The 2008 bailout refers to a series of financial rescue measures implemented by the U.S. government in response to the financial crisis triggered by the collapse of major financial institutions, primarily due to exposure to subprime mortgages. The most significant action was the Troubled Asset Relief Program (TARP), which allocated $700 billion to purchase distressed assets and inject capital into banks to stabilize the financial system. This intervention aimed to restore confidence in the banking sector and prevent a complete economic collapse. Ultimately, TARP and other measures helped to stabilize the economy, although they sparked debate about government intervention and financial regulation.