Republicans introduce bill to prevent Euro bailout

[Quantum Windbag]

And NONE of that money is coming from the US!

Really?

U.S. plays 2 roles in European bailout plan

Yeah, read your link. The US is a member of the IMF, so theoretically if the EU were to collapse, "American taxpayer dollars" might go to the EU.

No "bailout" money is coming from the US.

It actually is, to the tune that we supply around 17% of the IMF money that is being used for the bailout. Just because the ideal is that we get it back does not mean it is not being spent.

 

[Quantum Windbag]

Read this. YOU might learn something.

Q+A-How does the EU's financial safety net work? | Reuters

Good God... are you really that dense?

WHERE DO YOU THINK THE MONEY COMES FROM?

Holy shit man.... quit with the playing DUMB.

It works just like a bank, genius. Money is loaned and equity is still retained. If Greece gets a loan from the IMF, it will OWE the IMF that money, plus interest. The United States will OWE zilch because it is NOT guaranteeing Greece's loan. Is your neighbor who has money in the same bank you do business with responsible for YOUR mortgage if you default? Of course not.

Do you really believe this? What is the collateral Greece is putting up for this loan? If I default on my house the bank gets it, if Greece defaults on the loans what does the IMF get? Other than the bill because they are guaranteeing loans Greece is already defaulting on.

 

[BolshevikHunter]

When The United States of America is controlled and ruled by International Bankers, The International Bankers are gonna bail out all their International Banks. The prior bail outs have already done this to a certain extent. This would only make it Law so nobody can call them on it. Anyone with a brain already should have understood that the banks here operate in many other Nations. That's bottomfeeding Internationalism for yuh. Our founders warned us about the dangers of it. That puppet puke bag maggot Timothy Geithner can't let his Masters down or he will be replaced. ~BH

AARGH!!! Why oh why do we bother even attempting to explain to these dunderheads...

You talking to me Maggie? Make that clear so I can respond correctly. You either have your head stuck up your ass as usual, Or you're smarter than I ever took you for. ~BH

 

[PubliusInfinitum]

just making things up, are we?

Or do you have a source?

sure... will this do?

"that call was part of what a senior treasury department official called “one long conversation” with european leaders, who over an extraordinary weekend of late nights and early mornings overcame german resistance and agreed to a wholesale expansion of the bloc’s political and financial mission. bending the rules, they backed the stability of all 16 countries that use the euro with loan guarantees adding up to nearly $1 trillion. "

hey, thanks for making my case!! Also, from the nyt article you linked:

now, mr. Obama told mrs. Merkel that the europeans needed an overwhelming financial rescue to end speculation that the euro — and european unity — could crumble.

he said nothing about u.s. Joining in the support.

roflmnao...

 

[Avatar4321]

Do you really believe this? What is the collateral Greece is putting up for this loan? If I default on my house the bank gets it, if Greece defaults on the loans what does the IMF get? Other than the bill because they are guaranteeing loans Greece is already defaulting on.

There is no collateral.

 

[MaggieMae]

Sure... Will this do?

"That call was part of what a senior Treasury Department official called “one long conversation” with European leaders, who over an extraordinary weekend of late nights and early mornings overcame German resistance and agreed to a wholesale expansion of the bloc’s political and financial mission. Bending the rules, they backed the stability of all 16 countries that use the euro with loan guarantees adding up to nearly $1 trillion. "

And NONE of that money is coming from the US!

Really?

U.S. plays 2 roles in European bailout plan

Interesting article. Did you hope no one would actually read it (as is a rather bad practice on this board)??

A few excerpts, just for edification:

Economists say these programs pose little risk to U.S. taxpayers and that the risk of another financial crisis is far greater.

Under this program, a foreign central bank can sell a specific amount of its currency to the Fed and receive dollars, which it can then lend to commercial banks in its jurisdiction. The foreign central bank promises to buy back its currency from the Fed at the same exchange rate at a certain date, so the Fed doesn't make or lose money on currency fluctuations. The foreign central bank pays interest to the Fed.

The foreign central bank must repay the dollars, even if the commercial bank it loaned them to defaults. The only way the Fed would lose money is if the foreign central bank defaults. The risk of that "is remote," Reinhart says.

The Fed set up this swap facility in December 2007 when the financial crisis was beginning, and extended it to more than a dozen central banks. It closed the program in February when it looked like the storm had passed. It lost no money on the program. In fact, it earned almost $5.8 billion in interest on central bank liquidity swaps in 2008 and 2009.

 

[MaggieMae]

Tell me, how do you guarentee money you don't have?

That's the EU's problem to figure out, not ours. But again, read the Reuters piece, which explains how it will work. I'm sure GB's credit worthiness is still a respectful consideration on a global scale, at least enough to be a guarantor of the loan.

How does the fact that we are effectively cosigning a loan that is probably not going to be paid back not put our money at risk? Unless you are claiming is that the plan is we default on the loan if they default, which sorta defeats the purpose of a guarantee.

"WE" are not cosigning ANYTHING!!

 

[boedicca]

Do you really believe this? What is the collateral Greece is putting up for this loan? If I default on my house the bank gets it, if Greece defaults on the loans what does the IMF get? Other than the bill because they are guaranteeing loans Greece is already defaulting on.

There is no collateral.

Correct. This is one of those situations in which a borrower gets so deeply in debt that the debt holders try to keep it afloat so that it doesn't default on everything it owes.

If this process is allowed to continue, we'll be bailing out all of Europe while our own economy goes down in flames.

 

[MaggieMae]

ROFLMNAO...

Yeah, that's right... If reality doesn't work for ya... CREATE YOUR OWN.

Good call...

Prove me wrong or admit defeat. Your choice.

Cool... I choose "Prove you wrong."

And I choose as source to prove you wrong... one which I think you'll find hard not to accept.

Good God... are you really that dense?

WHERE DO YOU THINK THE MONEY COMES FROM?

Holy shit man.... quit with the playing DUMB.

You really don't know how the IMF works, do you? Nor do you seem to understand how the EU "bailout" is structured.

There's no bailout involved. The IMF is guaranteeing loans from the EU to EU states.

(that's the International Monetary Fund, not the Impossible Missions Force)

Since the US is a member of IMF, then I guess somewhere down the line the money might have come from us. But as a member of the IMF, we pay a set percentage into it, not a "pay as you go" situation.

Now in case ya missed it... this proves you wrong... using YOU and your own reasoning as the source.

Now how cool is THAT?

Once again, I will refer to my example IN RESPONSE TO YOUR BIG FUCKING RED LETTERS, and that would be do you expect a neighbor who has HIS loan and/or savings accounts in the same bank as yours to pay your loan if you default? NO. The bank covers the default by using its existing cumulative equity assets from thousands of individual accounts.

Duh...

 

[MaggieMae]

Good God... are you really that dense?

WHERE DO YOU THINK THE MONEY COMES FROM?

Holy shit man.... quit with the playing DUMB.

It works just like a bank, genius. Money is loaned and equity is still retained. If Greece gets a loan from the IMF, it will OWE the IMF that money, plus interest. The United States will OWE zilch because it is NOT guaranteeing Greece's loan. Is your neighbor who has money in the same bank you do business with responsible for YOUR mortgage if you default? Of course not.

Do you really believe this? What is the collateral Greece is putting up for this loan? If I default on my house the bank gets it, if Greece defaults on the loans what does the IMF get? Other than the bill because they are guaranteeing loans Greece is already defaulting on.

I suggest NO ONE answer this guy's questions until he actually R.E.A.D.S the Reuter's article which explains it all and answers the questions completely. That he simply can't *get* that the IMF is a B.A.N.K. which operates like any other B.A.N.K. by issuing loans with guarantees, there's no further point. He can't even *get* the fact that the United States is NOT one of the guarantors in this particular case.

 

[mudwhistle]

Sounds reasonable to me... We can't even fix our own country yet we are trying to fix another country????? WTF?

Right Now - Republicans introduce bill to prevent Euro bailout

They're tooooooooo big to fail.

 

[MaggieMae]

When The United States of America is controlled and ruled by International Bankers, The International Bankers are gonna bail out all their International Banks. The prior bail outs have already done this to a certain extent. This would only make it Law so nobody can call them on it. Anyone with a brain already should have understood that the banks here operate in many other Nations. That's bottomfeeding Internationalism for yuh. Our founders warned us about the dangers of it. That puppet puke bag maggot Timothy Geithner can't let his Masters down or he will be replaced. ~BH

AARGH!!! Why oh why do we bother even attempting to explain to these dunderheads...

You talking to me Maggie? Make that clear so I can respond correctly. You either have your head stuck up your ass as usual, Or you're smarter than I ever took you for. ~BH

Well if you can't see just by looking that I was indeed responding to you, then I rest my case. I certainly don't expect you to understand the situation when you can't even do that.

 

[MaggieMae]

Do you really believe this? What is the collateral Greece is putting up for this loan? If I default on my house the bank gets it, if Greece defaults on the loans what does the IMF get? Other than the bill because they are guaranteeing loans Greece is already defaulting on.

There is no collateral.

We don't know that yet. I'm sure all the details of whatever they negotiate with the IMF and the EU won't all be put up on YouTube.

 

[boedicca]

We get to repo The Parthenon?

 

[dilloduck]

We get to repo The Parthenon?

Talk about some crumbling infrastructure !

 

[LibocalypseNow]

The Bill should receive Bi-Partisan support. I'm not too optimistic about this happening though. Pelosi & Reid have poisoned the well so much at this point. Lets hope they see the light and work together on this one though. Btw,we don't know how much our Federal Reserve is giving in Tax Payer dollars for the Europe bailout either. I would like to see how much they're giving to Europe.

 

[RetiredGySgt]

Just making things up, are we?

Or do you have a source?

Sure... Will this do?

"That call was part of what a senior Treasury Department official called “one long conversation” with European leaders, who over an extraordinary weekend of late nights and early mornings overcame German resistance and agreed to a wholesale expansion of the bloc’s political and financial mission. Bending the rules, they backed the stability of all 16 countries that use the euro with loan guarantees adding up to nearly $1 trillion. "

And NONE of that money is coming from the US!

Bullshit. We pay into the fund dumb ass.

 

[LibocalypseNow]

The U.S. currently makes up 25% of IMF funds. Some say it's a little lower percentage and some say it's even higher. My research shows it's roughly 25%.

 

[rdean]

If we had listened to Republicans explain how to "fix" the economy, after they nearly destroyed it, we would be in the midst of a "Great Depression". But it seems, for some odd reason, they still believe they can make this country "fail". Why? I honestly don't know.

They can't possibly REALLY believe that giving more money to the rich and deregulating companies will make things better. Those are the problems. So, the goal must be to ruin the country. What else could it be?

 

[WillowTree]

If we had listened to Republicans explain how to "fix" the economy, after they nearly destroyed it, we would be in the midst of a "Great Depression". But it seems, for some odd reason, they still believe they can make this country "fail". Why? I honestly don't know.

They can't possibly REALLY believe that giving more money to the rich and deregulating companies will make things better. Those are the problems. So, the goal must be to ruin the country. What else could it be?

but we should listen to the demorals cause they been telling us for years to keeps our noses outta other's peoples business.. this is as good a time as any to start.. let the europes sink or swim on their own.