European Bailout Helps Market Bounce Back: Will America's, Too?
Angie
2010/05/11 19:26:09
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The nearly $1 trillion bailout package of loans provided by the European Union and IMF has helped Europe bounce back from its market slump.
With loans providing confidence, the European Central Bank has promised to buy government and private-sector debt where needed to avert market seizures. The move however, while returning favors much in the manner of 'you pat my back, I'll pat your back,' has not stopped the rise in insurance costs for debt. Insuring Banco Santander's nominal $10 million debt cost $320,000, as compared to $125,000 in previous months.
The new bailout fund is financing needs for Europe's largest problems: Portugal, Spain, Ireland and Italy. However, funding will only cover costs for one year. In that time, it will be up to each individual economy to do its part to help Europe bounce back. Will America's bailout be as successful as Europe's?
With loans providing confidence, the European Central Bank has promised to buy government and private-sector debt where needed to avert market seizures. The move however, while returning favors much in the manner of 'you pat my back, I'll pat your back,' has not stopped the rise in insurance costs for debt. Insuring Banco Santander's nominal $10 million debt cost $320,000, as compared to $125,000 in previous months.
The new bailout fund is financing needs for Europe's largest problems: Portugal, Spain, Ireland and Italy. However, funding will only cover costs for one year. In that time, it will be up to each individual economy to do its part to help Europe bounce back. Will America's bailout be as successful as Europe's?
America has already experienced three stimulis packages....so how come we're still in trouble???
The problem with Greece, Spain, Portugal, et al, is their full-blown socialism, wasteful government spending and crazy "entitlements". Like retiring when you're in your early-mid 50s and receiving a government pension until you die. They can no longer afford to pay able-bodied people to sit around and do nothing. Duh . . .
Note to Europe: It's time to Wake Up, get off your bottoms and get to work. Look to yourselves for your future, NOT your government! (Why would anyone willingly allow some idiot politician to control their future in the first place?)
Until socialism is removed from these "eurozone" nations, this story will repeat until all the money they're printing now devalues to the point it causes a global financial collapse. (That's where this is headed, in my opinion.)
The socialism which has lead to these problems in Europe is the same kind of garbage Obama is trying to enact here! Maybe now more people will see why so many Americans are opposed to Obama's radical actions.
SOCIALISM DOES NOT WORK -- IT FAILS WHENEVER IT IS TRIED. Government dependency=Bad. Personal Responsibility=Good. Any Questions?