Another bank, another bailout
So the joke going round the financial centres these days is “You’re not a bank unless you’ve had a government bailout.”
The UK, Europe, USA, Japan, now South Korea…they’re all bailing out the banks. To the tune of hundreds of billions of dollars for each region, trillions globally. But just what do bail out and bailout mean?
bail someone/something out (phrasal verb): to free someone or something from a difficulty or problem. If you owe a friend $1000 that you cannot pay, and your dad comes along and pays the money for you—then you’ve just been bailed out, your dad bailed you out.
bailout (noun): financial assistance given to a failing business (or a failing country) to save it from collapse
Right now, governments of the world are taking tax-payers’ money and giving it to banks to bail them out because without the bailout—so the argument goes—the banks would collapse and the whole financial system of the world would come crashing down around our ears.
NB: these are not the only meanings for bail and bail out, but they’re the only ones that matter in the days of Armageddon 🙂