American taxpayers could be forced to foot the bill if Fed's bailout of faltering Eurozone turns sou

[OhioChick]

American taxpayers could be forced to foot the bill if Fed's bailout of faltering Eurozone turns sour

Treasury Secretary Timothy Geithner in Poland to meet with European finance ministers

18th September 2011

American taxpayers could end up footing the bill if the United States' bailout of the faltering Eurozone turns sour.

At present, U.S. citizens are fairly well protected, but if the crisis continues to grow and America takes on a greater role, risk to consumers and taxpayers in the country will increase, according to economists.

The biggest exposure could come from America's status as the single largest source of money for the International Monetary Fund.

An emergency provision, approved by the Group of 20 industrialised nations in 2009, granted the IMF broad powers to expand its lending authority, meaning American taxpayers could be left on the hook if those loans later go bad.

More: http://www.dailymail.co.uk/news/article-2038757/Eurozone-crisis-US-taxpayers-forced-foot-Feds-bailout-turns-sour.html

[socialist_n_TN]

1. A-FUCKING-GAIN?????????

How many times is the working class going to be asked to bail out the system that's KILLING them???? This is getting ridiculous.

And, OF COURSE, when a new round of bailouts happens and the deficits go up again BECAUSE OF THE BAILOUT, then the working class will have to pay AGAIN with cuts to services in order to control said deficit.

It's either a conspiracy or a cycle of stupidity. Or just capitalism.

[dkf]

3. You are being asked to bail out the Greeks.

Don't we support their stand to not get benefit cuts? Now you know where the Germans are.

[socialist_n_TN]

8. No. I'm being asked (ordered) to bail out Greek

and European BANKERS. That's a BIG fucking difference.

[dkf]

10. Look at what may be in store for the Greek people...

Because Athens still does not raise sufficient tax revenues to fund its public services, it would fail to pay all of its domestic bills. Public sector workers might not be paid, some social security benefits might fall short. The shock of default and the lack of money would send the economy reeling.

At the same time as the Greek state ran out of money, the country’s banks would face collapse because their holdings of domestic sovereign bonds would be heavily written down. The European Central Bank could not accept defaulted bonds as collateral to lend to banks, since they would be worth little.

The closure, even temporarily, of payment systems and cash machines would amplify the problems. To restart normal economic life, Greece would need to recapitalise its banks and balance its books on a day-to-day basis. If creditors were willing to lend fresh money to Athens, the direct consequences could stop there. But finding new lenders after default is not easy.

The alternative would be to restore Greece’s ability to create money to pay its bills – and that would require exit from the euro, to re-establish the central bank’s ability to create money.

http://www.ft.com/intl/cms/s/0/80094624-e076-11e0-bd01-00144feabdc0.html#axzz1YAbv4mwD

[socialist_n_TN]

11. I'm a commie......

I say go with the latter option, of a group of bad options, and throw in nationalization of banks, an economy planned FIRST around human needs for the Greek people, expropriation of the wealth under worker's control and worker's control over the means of production. And if the bankers don't like it, JAIL THEIR MOTHERFUCKING ASSES.

[azul]

13. Why, they would be banned from the League of International Corporations.

There really seems to be no good solution for the Greek people with the lenders calling the shots. But they cannot be made to suffer too much or riots could get out of control, and anything could happen. Capitalism works hard to prevent uncertainties, and some forms of communism.

[dkf]

14. Judging from the benefits they had, they got that.

But it failed.

[Safetykitten]

2. Of course, why would anyone think otherwise?

[amborin]

4. kr

but recced to zero.....

[Turbineguy]

5. What?

Like was anybody expecting banks and speculators to take a hit?

[jaxx]

6. Rupert owns the dailymail.

Beware the shit published there.

[moondust]

7. Will GE get to help out?

I know they don't pay taxes but they are among the biggest beneficiaries of Wall Street's interdependent global capitalist system that the IMF supports.

Or will it be strictly small businesses and individuals--U.S. taxpayers who may not benefit at all from the global capitalist system--who end up footing the bill to save it?

[azul]

9. Geithner's job #1 is bank protection.

Taxpayers on the hook is the threat to not let the big US banks fail again. The European banks lended the troubled states the money and the US banks insured the loans with financial instruments of destruction.



"US banks will also face losses in the event of a Greek default, both in terms of direct exposures visible in SEC filings and regulatory reports, and indirect idiosyncratic exposures that flow through counterparties and customers. The top several US banks have reportedly written credit default swap protection on approximately one-half the total outstanding debt of all PIIGs nations combined, a total many times their capital."

http://blogs.reuters.com/christopher-whalen/2011/06/16/default-by-greece-may-start-the-global-restructuring-process/

[Safetykitten]

12. And to be the "rogue" master-mind as the administration looks on helplessly.

[amandabeech]

15. I knew that it came down to the insurance.

That's why Timmie is involved.

Jeez, half the PIIG's debt.

We are in one hell of a shitstorm.

Thanks for posting this.