EFSF from 440bil to 2 trill???

Discussion in 'Economics' started by mastacoli71, Oct 18, 2011.

  1. Close to 5x current size? Where is that extra 1.6 trill coming from? Printing presses? I don't get it.
     
  2. give efsf 400 bil, call it a bank, let it lend out 5$ for every 1$ it has- wolla
     
  3. lol, if only it were that easy
     
  4. Visaria

    Visaria

    I would like the answer to this question as well.
     
  5. Aren't they trying to introduce a tax on financial transactions. Could that be it?
     
  6. bonds

    bonds

    where are they gonna get the money from?
     
  7. There are a couple of places. One the richer countries can lend it to them. Two they can issue bonds to generate income. Three they can print money.

    Perhaps a combination of the three. However Germany is reluctant to support either further lending or risk of being liable on even more debt.
     
  8. Ok, so who is going to lend money to a "pseudo bank" that is bailing out banks that hold "toxic" debt of countries that have been fiscally irresponsible for decades. It will not be cheap regardless of who is backing it. Why do you think Germany is reluctant to do so? Cause they know how bad the situation is or could get.

    I personally think financial crisis of 2008 will be nothing in comparison to what we are facing now. We are talking about countries, not just institutions.
     
  9. TGregg

    TGregg

    The usual suspects (great movie, BTW). Government makes a decision on what to do with the taxpayers money, then leverages the bejebbers out of it. Basically, they are doubling down (again) on a loser. Probably everyone here knows how well that works.

    People have absolutely lost their damn minds.
     
    #10     Oct 19, 2011