From financial guru John Mauldin
“It now looks like almost 30% of the Greek financing will come from the IMF, rather than just a small portion. And since 40% of the IMF is funded by US taxpayers, and that debt will be JUNIOR to current bond holders (if the rumors are true) I can’t tell you how outraged that makes me.
“What that means is that US (and Canadian and British, etc.) tax payers will be giving money to Greece who will use a lot of it to roll over old bonds, letting European banks and funds reduce their exposure to Greece while tax-payers all over the world who fund the IMF assume that risk. And does anyone really think that Greece will pay that debt back? IMF debt should be senior and no bank should be allowed to roll over debt and reduce their exposure to Greek debt on the back of foreign tax-payers.
“I don’t think I signed on for that duty. Why should my tax money go to help European banks? This is just wrong on so many levels and there is nothing seemingly we can do.”
What Greece is experiencing now, we will someday experience – (minus being bailed out by other countries). We are spending money we do not have so politicians can buy votes from people who don’t know any better to pay benefits and pensions to public sector workers and others. This is unsustainable. The debt will crush us and our children and grandchildren.
By the way, the IMF is telling the Greek leaders they must privatize their health care sector because they cannot afford government-run health care. Is “change we can believe in” really taking us in the right direction?
There is only one solution that will work and that is to dramatically shrink the size and scope of the Federal government while letting the states that are in trouble go through reorganization in bankruptcy. The bail-outs must stop! Banks, businesses, and bloated bureaucracies must be liquidated or reorganized and put into the hands of hard-nosed people who will say “no” to unsustainable spending whether it is bonuses, pensions, giveaways, or something else.