Emergency Economic Stabilization Act (EESA) of 2008

AAA

DEFINITION of 'Emergency Economic Stabilization Act (EESA) of 2008'

One of the bailout measures taken by Congress in 2008 to help repair the damage from the subprime mortgage crisis. The act gives the Treasury Secretary the authority to buy up to $700 billion of troubled assets and restore liquidity in financial markets. The Emergency Economic Stabilization Act (EESA) was originally created and proposed by Henry Paulson.

INVESTOPEDIA EXPLAINS 'Emergency Economic Stabilization Act (EESA) of 2008'

The original form of the EESA was rejected by the House of Representatives in September of 2008 and was therefore revised. A revised version was passed the following month. Proponents of the plan felt that it was vital to minimize the damage done to the economy by the mortgage meltdown, while detractors felt that the cost of the plan was way too high.

RELATED TERMS
  1. Consumer Financial Protection Act

    An amendment to the National Bank Act designed to identify and ...
  2. Tim Geithner

    The 75th United States Secretary of the Treasury. Geithner was ...
  3. First-Time Homebuyer Tax Credit

    A refundable tax credit made available to Americans purchasing ...
  4. Homeowner Affordability And Stability ...

    A program rolled out in 2009 in an attempt to stabilize the U.S. ...
  5. McFadden Act

    Federal legislation that gave individual states the authority ...
  6. Financial Stability Plan (FSP)

    A plan unveiled by the Obama administration in April, 2009, that ...
Related Articles
  1. The Fuel That Fed The Subprime Meltdown
    Personal Finance

    The Fuel That Fed The Subprime Meltdown

  2. Fannie Mae, Freddie Mac And The Credit ...
    Insurance

    Fannie Mae, Freddie Mac And The Credit ...

  3. How A Limited Government Affects A Country's ...
    Economics

    How A Limited Government Affects A Country's ...

  4. Where NOT To Invest in Latin America
    Economics

    Where NOT To Invest in Latin America

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center