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Greece Bailout?

The European Union has reserved baiouts for natural disasters. Greece is a man made financial disaster, borrowing 12% of its GDP, just like Britain and the US come to think of it. Bond spreads, the additional percent points above other country costs of borrowing, have widened for Greece, ie Greece is paying a lot more to borrow money. This article suggests that the EMU European Monetary Union will come to the resuce with, well, with something. But will this set a precedent? What about Portugal, Italy, and Spain?

This will strengthen the influence of Germany but will it cause others to toe the financial line or like Lehman expect a bailout?

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5 responses to “Greece Bailout?”

  1. Tammy C. Salinas Avatar
    Tammy C. Salinas

    I think it will. Italy and Spain will think well why are they so different. If Greece can get a bailout why couldn’t they? It’s like a domino effect not only in the U.S. but now nationally. Hmmm…If the USA comes to need a bailout, then what???

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  2. Dennis Elam Avatar
    Dennis Elam

    Tammy
    Great qeustion, who is going to bail out the US? I suspect the markets will address this question in the next two years, dramatically

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  3. Tammy C. Salinas Avatar
    Tammy C. Salinas

    When you say dramatically, the words that come to mind are: not by choice, disaster, 10X a depression, the country that was once flourishing, now is now a dried up flower??? SCARY. The address of this question will come when it’s too late I think.

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  4. Erin De La Rosa Avatar
    Erin De La Rosa

    I don’t think that anyone one would bail out our country. I think then international community would be happy and say that capitalism doesn’t work, see what happened to the US.

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  5. Dennis Elam Avatar
    Dennis Elam

    The US has trillions of dollars of debt, there is no one of that size. The only logical thing would be for the US to declare that its ezxtensive gold reserves were wroth the market price of gold, gold woudl soar but the US would be saved, so to speak.

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