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

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.

Are you going to try to tell me that no US money is currently going to the EU, or Greece, through the IMF? Or that we are not a risk in doing this? I am pretty sure that little risk is not the same as no risk, which is the claim of the Doc.

Also, the need of this is debatable, as is the risk. Just because some Fed official is saying that central banks rarely default does not indicate the risk in this particular instance. Most banks in the US are stable, but we have the FDIC there because the risk is not 0, and they can go in and close banks if they think the risk is too high. If the only standard was that it rarely happened we wouldn't need the FDIC or the IMF.

 

[Quantum Windbag]

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.

One of is certainly confused. The IMF is an association of central banks of its member nations. Its sole purpose is to stabilize the economy of the world through loans from its members. No one deposits anything with the IMF, it holds no accounts, and its assets consist entirely of the contributions of its member nations. Explain to me how this makes it a bank.

 

[PubliusInfinitum]

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.

Oh my... "Economists..." Well there ya have it...

More assurances from "Economists..."

No doubt that the risk of another financial crisis (the one which is far greater) would tend towards risking the 54 billion of US Taxpayer money which will be exposed when the IMF 'loans' it to those who are looking at another financial crisis...

ROFLMNAO... You people are a freakin' MENACE.

Europe is going to TRAINWRECK INTO AN ECONOMIC SUPERNOVA. The EU is going to collapse, the Euro right along with it... and all because the Europeans failed to recognize and respect the immutable principles of nature... and the simple fact that Socialism is, in and of itself... at even the theoretical level, mathematically untenable.

Meaning that Socialism cannot work... which explains why Socialism has failed everywhere it been tried.

But we can be sure that these SAME economists saw absolutely NO PROBLEM with the US Government interfering with the Mortgage and Credit Markets, in order to provide for FAIR HOUSING...

Which is sort of why as a general rule 'economists' are to be ignored; except where they're found belittling Progressivism and/or any other facet of Leftism.

 

[BolshevikHunter]

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.

Your too fucking stupid to see anything without your sheople glasses on you fraud. You're a joke Maggie, just like Rod Stewart said. LOL!!! You pathetic puke you. ~BH