Diagram of the Bail-Out approved by the House of Representatives.

The re-introduced $700B Bailout plan was approved with a couple of additions. The most relevant are: The increase in the amount insured by the FDIC ($250,000 up from $100,000), a Child Tax Benefit Extension and a special assistance to victims of recent Hurricanes.

From the International Money Markets down to Individuals and Small Businesses

The main goal of the plan is to jump start lending among Financial Institutions and in exchange get an equity stake in the rescued Banks. This Diagram presents a very simplified view of the actual proposal but its main points are expressed in graphical form.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza