Since the year 2008 the world economy has been in the grip of a major recession which is much worse than what the world had faced in the year 1929. All of us are reeling in its effect currently. Delinquency is not a matter which has stayed restricted to a few people toady it is been felt among most of the population as there is a serious liquidity crunch in the market. People either do not have money or if they have they are scared to use this scarce resource. The economy is has come to a stand still. The stock markets are at an all time low and major institutions have declared themselves broke.

The news programmes are filled with reviews of companies who have gone bankrupt due to lack of funds in the market and the millions of people who would be rendered unemployed due to this. Pink slips are no measure of bad performance but a tool for the companies to keep a slim base to sustain its cost. The Government faced the problem of serious money crunch and came to the conclusion to refurnish the liquidity in the economy with the help of extra money. The bailout package was thus released to give the Americans a relief from the debt situation they were facing.

The Government gave tax rebates and relief's to people and corporate to allow them to have money in hand and to secure their operation. This gave people more lee way especially small business men to reorganise their business. Many businesses utilised the extra money to write off their debts and face a new beginning. The corporate due to the government help gave the customers support to settle debts and get debt free. The customers have got debt settled at unbelievable rates which is 60-70% of their bill.

The stimulus package came at the right time and saved many companies and people from going bankrupt. Today the economy is still facing big challenges but it is looking up due to some major measures taken up by the Government.