Here’s a great chart put together by the New York Times. It shows the degree to which government debt issued by profligate nations such as Greece and Spain is owned by banks in Germany, France, and the United Kingdom. It is quite reasonable to describe what happened as an indirect bailout of domestic banks dressed up as a bailout of the Mediterranean nations.
International Liberty 
[…] fiscal ha empeorado mucho, en gran parte gracias al FMI y los diversos rescates (que en realidad fueron diseñados para rescatar a los bancos irresponsables en países como Francia y […]
[…] fiscal policy has become much worse, thanks in large part to the IMF and various bailouts (which actually were designed to bail out irresponsible banks in nations such as France and […]
[…] all intents and purposes, the Greek bailout was a bank bailout. And the same would be true for an Italian […]
[…] welfare state. And the “troika” made a bad situation worse with bailout funds (mostly to protect big banks that unwisely lent money to Greek politicians, but that’s a separate […]
[…] state. And the “troika” made a bad situation worse with bailout funds (mostly to protect big banks that unwisely lent money to Greek politicians, but that’s a separate […]
[…] Does globalism mean agreeing with the IMF’s support for bailouts and higher taxes, policies which arguably are only for the benefit of politically connected big banks? […]
[…] a fiscal crisis by enabling more bad policy, while also rewarding spendthrift politicians and reckless lenders (as I predicted when Greece’s finances first began to […]
[…] and also explaining that politicians like Merkel only got involved because they wanted to bail out their domestic banks that foolishly lent lots of money to the Greek […]
[…] politicians and bureaucrats, driven by an ideological belief in centralization (and a desire to bail out their big banks), instead decided to undermine the euro by creating a bigger mess in Greece and sending a very bad […]
[…] worse, her motives have always been suspect because of fears that she’s mostly concerned about protecting German banks that foolishly lent a lot of money to profligate […]
[…] bailout. That approach has several undesirable implications. It will a) exacerbate moral hazard by rewarding the investors who bought Italian bonds, b) it will enable Italian politicians to incur more debt, and c) it will enable the Italian people […]
[…] that senior bureaucrats routinely make the mistake of bailing out profligate governments (often as a back-door way of bailing out banks that foolishly lent to those governments), and they compound that mistake by then insisting on big […]
[…] and its main role now is to bail out insolvent nations (what that really means, of course, is that it exists to bail out big banks that foolishly lend money to profligate third-world […]
[…] her motives have always been suspect because of fears that she’s mostly concerned about protecting German banks that foolishly lent a lot of money to profligate […]
[…] applies to the Greek fiscal fight. Simply stated, there are lots of people and institutions that own Greek government bonds and they are afraid that their investments will lose value if Greece decides to fully or partially […]
[…] money after bad with another bailout. Well, if you’re a politician from Germany or France and your big banks (i.e., some of your major campaign contributors) foolishly bought lots of government …, the answer might be yes. After all, screwing taxpayers to benefit insiders is a longstanding […]
[…] on their editorial pages, this powerful expose of IRS abuse by a business columnist, and this great graphic on the connection between big banks and government bailouts in Europe. Rate this:Share […]
[…] If you have any French government bonds, sell them now. If you don’t believe me, look at this graphic from the New York Times. GA_googleAddAttr("AdOpt", "1"); GA_googleAddAttr("Origin", "other"); […]
[…] But when you strip away the hysterical rhetoric, what they’re really saying is that bailouts are needed for the banks in their own nations that foolishly lent too much money to reckles…. […]
[…] that politicians from rich nations are trying to indirectly protect their banks, which – as shown in this chart – are in financial trouble because they foolishly thought lending money to reckless welfare […]
[…] is that politicians from rich nations are trying to indirectly protect their banks, which – as shown in this chart – are in financial trouble because they foolishly thought lending money to reckless welfare […]
[…] that politicians from rich nations are trying to indirectly protect their banks, which – as shown in this chart – are in financial trouble because they foolishly thought lending money to reckless welfare […]
[…] money after bad with another bailout? Well, if you’re a politician from Germany or France and your big banks (i.e., some of your major campaign contributors) foolishly bought lots of government …, the answer might be yes. After all, screwing taxpayers to benefit insiders is a longstanding […]
[…] money after bad with another bailout. Well, if you’re a politician from Germany or France and your big banks (i.e., some of your major campaign contributors) foolishly bought lots of government …, the answer might be yes. After all, screwing taxpayers to benefit insiders is a longstanding […]
[…] money after bad with another bailout. Well, if you’re a politician from Germany or France and your big banks (i.e., some of your major campaign contributors) foolishly bought lots of government …, the answer might be yes. After all, screwing taxpayers to benefit insiders is a longstanding […]
[…] of the big nations, which means that they are indirectly attentive to interest groups (such as big banks) that have political power in those big […]
[…] The Real Reason for the European Bailout It is quite reasonable to describe what happened as an indirect bailout of domestic banks dressed up as a bailout of the Mediterranean nations. […]
[…] Some people have asked me why German politicians are so willing to bail out Greek politicians. This picture explains everything. The bailout is really a backdoor giveaway to the big European banks that foolishly lent money to […]
[…] Some people have asked me why German politicians are so willing to bail out Greek politicians. This picture explains everything. The bailout is really a backdoor giveaway to the big European banks that foolishly lent money to […]
[…] Some people have asked me why German politicians are so willing to bail out Greek politicians. This picture explains everything. The bailout is really a backdoor giveaway to the big European banks that foolishly lent money to […]
[…] The bailout happened in part because politicians and international bureaucrats (when they’re not getting arrested for molesting hotel maids) have a compulsion to squander other people’s money. But it also should be noted that the Greek bailout was a way of indirectly bailing out the big European banks that recklessly lent money to a profligate government (as explained here). […]
[…] The bailout happened in part because politicians and international bureaucrats (when they’re not busy molesting hotel maids) have a compulsion to squander other people’s money. But it also should be noted that the Greek bailout was a way of indirectly bailing out the big European banks that recklessly lent money to a profligate government (as explained here). […]
[…] rich to exploit the poor. This accusation actually is true, but not in the way Mr. da Silva means. This post, using a chart put together by the New York Times, shows that the bailouts are mostly for the purpose of bailing out the big European banks that […]