Bottom line: Europe, namely Germany, can deal with their bailouts, except that they can't sell it to their people. So what do they do? Resort to Plan B: get the US to write their checks. Talk about a crooked administration! If you'd like to sign an automatic petition that will send letters to your representative and senators, here's a link: http://list.dickmorris.com/t/103060/598987/700/11/
What people fail to realize is, there is no U.S. or Europe on this topic. It is one large private global banking syndicate who has co-opted anyone who isn't living in a bunker with guns and butter. So it isn't Americans bailing out Europeans. It is Americans bailing out ourselves, and by the way these other guys benefit too. This is globalism gentlemen. The great equalizer. I've always found it odd that Americans are so pro-globalization when it essentially is a death-ray to anyone who doesn't own means of production (and the politicians to protect it) in some shape or form. Our general living standards will drop, don't like it? Well here comes the pain as the system collapses and brings with it all the chaos and bedlam that civilization strives to ideally avoid. The only way to stop it - Radical trade policy. Do that, here comes the pain ala 1930s and perhaps the end of civilization via nuclear holocaust when our potential enemies are no longer deep-captured by our economic incentives. So yes it is shit-sandwich, yes I hate big private banking syndicates, and yes we all get to take a bite until the people are no longer afraid of "or else the system collapses"... Position: Mildly long US equities for the last 1.5 weeks.
they are all ponzi schemes, this one likely tops it, one huge hell hole, chances are the money thrown in won't be paid back, wouldn't be surprised if Germany France get dragged into it and collapsed overnight
I definitely agree, and I don't think the basis is certainly not 'lets not bail out Europe because we don't like them'... Germany can't sell it to their people, so this is going on the back of the American tax payers and US government, which already have their serious problems, namely a massive debt problem. Lets not forget Great Britain, notorious for their euro-soclaistic policies, high prices and many people on the dole, have a higher credit rating than Washington! Germany needs to do what it needs to do and to hell what their people think. More load on the $15 trillion US debt will not happen because of ridiculous acting German public opinion! IMO...
IMF loan is senior to all other claims so that will be paid off first. Throw in the interest and it's always a win win for the US. The republicans are against this because they need a depression to get the presidency next year.