Europe: Where the bailout money goes

Ever wondered how European ‘bailouts’ are supposed to save their economies? Well wonder no longer. The chart below should give you a good understanding of why Greece is reluctant to accept more money which is being shoved down its throat. In contrast, Iceland’s banking system collapsed in 2008. No bailouts were given to them by the citizens as the country couldn’t afford it. They allowed their banks to fail. As a result, their currency depreciated to the correct levels and today their banking system, and believe it or not, their economy, is once again strong – it self-regulated its recovery. It’s almost as if the best way to save Greece and other struggling countries is to let them default – something I’ve been supporting since the start of the crisis – heck, Greece should just leave the Euro! 

As per Daniel Hannan :
Foreign financial institutions currently own 42 per cent of Greek debts, and foreign governments 26 per cent, the rest being owed domestically. By 2014, those figures will be 12 per cent and 64 per cent respectively. European banks, in other words, will have shuffled off their losses onto European taxpayers.

Of course, the outstanding debt will have have risen substantially in the mean time: from €330 billion to €390 billion. Then again, as Eurocrats remind us every day, it’s remarkably easy to be generous with someone else’s money.

So, the banks, through the bailouts, have transferred their bad debt to the citizens of these countries and walked away with their money, leaving the poor suckers of the EU to pick up the tab plus all the accumulated interest owed. No wonder the bankers want Greece to take the next bailout – then they can finally be guaranteed all their money back, even though it was THEM who made the bad investments in the first place. Socialism via the banking system – and the rich get richer…

If you’re wondering why Greece is being so obstreperous about the money it’s being offered, ponder this chart. Of every euro given to ‘Greece’, the Greek authorities get to spend just 19 cents; the rest goes on rescuing bankers and bondholders from the consequences of their malinvestments. Yet again, the poor are bailing out the rich.



About limelite001

This is my tribute to highlighting the hyposcrisy in the left and racial world...

Posted on 11 February 2012, in Uncategorized. Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: