Companies such as Chrysler and General Motors were on the verge of bankruptcy, and this forced the American government to intervene and bailout these companies. This is by using the funds emanating from TARP, which is an acronym for the Troubled Asset Relief Program. A company such as Ford Motors was able to protect itself from the effects of the financial crisis, mainly because it was maintaining a hedge fund, whose money could be used for purposes of protecting the organization, during a period in which it was facing some financial crisis. There is a lesson to be learnt from this study. The lesson is that, it is always necessary for companies or business organizations to maintain an hedge fund, that could be used to fund the operations of a company or a business organization during periods of recession.
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