Skip to comments.US Taxpayers Just Paid $780 Million To Fund The Latest Greece Bailout Tranche
Posted on 07/08/2011 7:38:49 PM PDT by mojito
The IMF is delighted to announce that it just approved a 3.2 billion disbursement of cash for Greece, its fifth, as part of the 12 billion in money that Greece needs in order to continue operating in the months f July and August.
And just for what purpose will this money be used, one may ask? Well, as explained a few weeks ago, in Greek Math: 12 Billion In, 18.2 Billion Out the entire amount will be promptly recycled by global financial institutions in the form of debt maturities and interest payments, which amount to 18.2 billion in the months of July and August. Simply said ECB, EU and IMF money in, money owed to bankers out.
The kicker: 17.09% of the money coming from the IMF, comes from, that's right dear US taxpayer, you (and since 21% of the quota contributions allocated to the IMF are deemed "non-usable", the actual number funded by the US is likely much higher). But this plot has a bonus kicker: as we reported on Wednesday, the actual Greek debt is no longer owed by European banks to the extent it had been previously expected: a development that threatens to scuttle the entire second Greek bailout plan as currently proposed.
So as the banks have been selling Greek debt, who has been buying? Mostly hedge funds, such as everyone's favorite John Paulson. So to recap: US taxpayers have just paid out about $780 million of the $4.6 billion in order to fund interest owed to... hedge funds.
(Excerpt) Read more at zerohedge.com ...
we need to stop trying to prop up failed companies and countries and instead we should let them fail and watch as something else takes its place.
They will fall anyway, we shouldn’t spend billions to prop them up. The longer they keep them teetering the worse the fall will get.
Maybe I’m stupid and not a one-worlder...but I feel the US taxpayers shouldn’t give Greece 1 cent. Let them sell their Parthenon or some of their islands. Loser socialists!
We’re broke - did we borrow the money from China for this stunt?
In answer to your question: Just yesterday, the European Central Bank said they would continue to accept Portuguese bonds as collateral for new loans, even though Moody’s had just downgraded Portuguese debt to junk status. In other words, Portugal is bankrupt, but the ECB will continue throwing bad money after bad.
Today, trading had to be halted on Italian exchanges for a number of Italian banks and insurance companies with exposure to PIIGS debt.
Oddly enough, when it’s all over, I think the Euro or some such will be the last one standing ... or some new “world currency” when they admit the nations are unable to save one another, let alone themselves.
“Maybe Im stupid and not a one-worlder...but I feel the US taxpayers shouldnt give Greece 1 cent. Let them sell their Parthenon or some of their islands. Loser socialists!”
Exactly,This reminds me of the Ant and the grasshopper.
We’re going to have to work into our 80’s so that Greeks who hate us can retire in their 50’s.
Have a nice day. :)
Bailouts?? Are not the payments for interest due only with no principal reductions?...until the next rollover? Are not all so-called bailouts only interest related, and only good until the next group of rollovers comes due?
DEFUND socialist collectives, foreign (Greece) and domestic.
DEFUND UNaccountable bureaucracies (socialists) UN and IMF.
Let’s see, that’s about 12,000 salaries for a year, isn’t it? But rather than do that, some intelligent person decided to flush it down the Greek toilet, never to be seen again. Now there’s money well spent, huh? Anyone know what the total foreign aid give-away budget is?
While our debt in increasing substantially, we continue to spend money we do not have to bail out an economy based on socialism. Socialism has failed 100% of the time it has been tried. Our socialist economy is failing, but we insist on emulating the Socialist Europeans, and other failing economies such as Communist Cuba. Stupid is as stupid does, ehh?
I declare this debt as odious.
Their average family of four shoulders $144,990 of their greek debt.
So OUR average family of four pays THEIR average family of four $212 so that they can keep up their lavish unfunded federal spending.
PLUS, we borrowed that $780 Million from China to pay Greece!
Our average family of four already shoulders $491,716 of our own federal debt!
Bumper sticker idea: Honk if I’m paying for your car, your mortgage, and your big, fat Greek bailout.
I don't think China is buying any more of our debt. We're printing money.
The last two sentences...
Since Germany's federal government acted as the loans' guarantor, the finance minister would have to make up for any shortfalls. If Greece gets a 50 percent haircut on its loans, that would cost the ministry more than 4 billion.
We're not bailing out out Greece.
We're bailing out the foreign banks that were dumb enough to lend them money.
Even the U.S. banks holds $1.8 billion worth of distressed Greek securities with an additional $4.7 billion of holdings in the private sector. When all types of claims and exposures are considered, the United States has $43.1 billion dollars invested in Greece....Bank of America, on the other hand, shows its direct sovereign and non-sovereign exposures to the aforementioned countries; cumulative Greek exposure amounts to only $677 million. Other banks did not reveal their figures.
Gee, wonder why...?
dang! I slipped some spreadsheet rows and messed up the populations....
it should have said...
Their average family of four shoulders $198,102 of their greek debt.
So OUR average family of four pays THEIR average family of four $290 so that they can keep up their lavish unfunded federal spending.
PLUS, we borrowed that $780 Million from China to pay Greece! (ok we just printed it)
Our average family of four already shoulders $178,526 of our own federal debt!
Thanks Future Useless Eater.
Or a great tagline...
Why not step out of the way and let China bail them out?
Thanks for the ping back to the thread and your comments. Thanks for your links & information, mewzilla.
Hmmm. Our taxpayer money paying Greek interest to hedge funds?
Must be one of those public-private partnerships we keep hearing about.
"So, we're borrowing from the Chinese, to pay the IMF, to give it to Greece, to pay hedge fund swindlers, one of whom is actually a Martian! Hee-hee-heeee!"