The Costs of Bailouts in the 2007-08 Financial Crisis

The 2007-08 bailout programs were initially created under the emergent situation of financial crisis. Despite their effectiveness in stopping the collapse of financial system, those bailouts have been criticized as ill-planned governmental intervention. Nonetheless, based on the calculation of both the dollar amount of return and the rate of return of each program, this Comment argues that the bailouts are in fact good investments. Furthermore, since Dodd-Frank was invented with the primary purpose of curtailing future bailouts, this Comment also argues that Dodd-Frank reflected an unwise, overhasty decision by Congress