Government Mortgage Bailout Will the Government MortgageBailout help you and your family? Perhaps not.  The Emergency Economic Stabilization Act of 2008 (Pub.L. 110-343, Div. A, enacted October 3, 2008), commonly referred to as a bailout of the US financial system, is a law authorizing the United States Secretary of the Treasury to spend up to US$700 billion to purchase distressed assets, especially mortgage-backed securities, from the nation’s banks. The Act was proposed by US President George W. Bush and Treasury Secretary Henry Paulson during the liquidity crisis of September 2008. The original proposal was three pages, as submitted to the United States House of Representatives. The purpose of the plan was to purchase bad assets, reduce uncertainty regarding the worth of the remaining assets, and restore confidence in the credit markets. The text of the proposed law was expanded to 110 pages and was put forward as an amendment to HR 3997. The amendment was rejected via a vote of the United States House of Representatives on 29 September 2008, by a margin of 228-205. On October 1, 2008, the Senate debated and voted on an amendment to HR 1424, which substituted a newly revised version of the Emergency Economic Stabilization Act of 2008 for the language of HR 1424. The Senate accepted the amendment and passed the entire amended bill by a vote of 74-25. Additional unrelated provisions …

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