Monday, October 24, 2011

This will end badly......

Now the gang will need to bail out the new loans and pay off these. Pretty soon all the Euros in the world will have to be borrowed to bail out the current loans.

Can you spell PONZI!

Most Greek bailout money has gone to pay off bondholders - The Washington Post
BRUSSELS — More than half of the money lent to Greece so far by the International Monetary Fund and European nations has gone to repay bondholders, a transfer of billions of dollars from taxpayers around the world to European banks and pension funds that invested in the troubled Mediterranean nation.

As the country struggles with a collapsing economy, violent strikes and historic levels of unemployment, a new analysis of an international bailout program shows the degree to which money provided to support Greece has been used to pay off its debts to the private sector.

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 These leaders run the institutions that control interest rates and monetary policies that have been making recent headlines.

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Oct. 21 (Bloomberg) -- Johannes Jooste, portfolio strategist at Merrill Lynch Wealth Management, discusses European Central Bank monetary policy and its bond-purchase program. He speaks with Francine Lacqua on Bloomberg Television's "On the Move." (Source: Bloomberg)

Oct. 21 (Bloomberg) -- Johannes Jooste, portfolio strategist at Merrill Lynch Wealth Management, discusses European Central Bank monetary policy and its bond-purchase program. He speaks with Francine Lacqua on Bloomberg Television's "On the Move." (Source: Bloomberg)

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Under an initial bailout program approved by the IMF and the European Union in May 2010, Greece’s government has been kept afloat by international loans that total $91 billion.

About $52 billion of that has been used to repay bonds that came due between the start of the program and last month, according to a review of the program done for European leaders gathered in Brussels to address financial problems in the 17-nation euro zone.

European banks are among the heaviest investors in Greek bonds. Officials in some developing countries have argued that the IMF, run by a European-dominated board and two consecutive French managing directors, seemed more interested in protecting private investors in Europe than it did when overseeing programs that wiped out dozens of banks during the Asian financial crisis.

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