Supporting the banks helps the rest of the economy. Plus, with the banks afraid of risk and lacking cash, banks have little capacity to lend money. Without those loans, the pace of growth in the global economy slows substantially, and may even go into reverse.
Answer:If the Federal Reserve would have bailed out some of he banks the economy wouldn't have taken a hit so hard because banks are the foundations.
Explanation:
Lets start with what bail outs do.
The government created a number of other programs to help the nation weather the Great Depression. While these initiatives were not bailouts, strictly speaking, they provided money and support to create tens of thousands of new jobs, principally in public works.
The Agricultural Revolution paved the way for the Industrial Revolution. As wealthy landowners bought and enclosed farmland, many people were forced to become TENANT FARMER or move to the cities. The Industrial Revolution began in the TEXTILE industry. Newly invented machines such as the SPINNING MACHINE helped increase the rate at which yarn and thread were made. Industrialization increased the demand for cotton as well. This led to Eli Whitney's invention of the COTTON GIN.
The main reason why the Russo-Japanese war started during the early start of the 20th century; it is regarded to be the first major conflict of the 20th century, was because Japan launched a surprise attack on the city of Port Arthur in Russia which was a direct provocation.
