In the aftermath of the 2008 financial crisis, the US government bailed out several major Wall Street banks and other financial institutions after their managers made years of bad business decisions. This was done through the Troubled Asset Relief Program, which authorized the government to purchase floundering companies’ assets and stock, including mortgage-backed securities. It was thought that the $700 billion bailout was essential to protect the overall US economy. The fear was that absent a bailout, it would all collapse.
