Quote:
Originally Posted by CrusaderPi
I don't think I understand how money works anymore. How did they go from being totally broke and only have enough cash and credit to stay in operation for another X months to being able to burn 8.1B in the space of a couple of years.
Edit: But good news is good news, I guess.
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A lot of the funds in the bailout were used to shore up short term liquidity issues. Most massive companies have very little cash on hand so when the liquidity markets all but dried up meeting short term payment schedules became near impossible. There are definitely long term issues as well, but the bailout prevented a domino effect that would have seen mass bankruptcy across the nation.