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Let's assume John goes to a Ferrari shop and can't afford the latest California T model because it's to expensive. John borrows the money from Tom and gets the

Let's assume John goes to a Ferrari shop and can't afford the latest California T model because it's to expensive. John borrows the money from Tom and gets the car, promising Tom to pay back. John then doesn't deliver on his promise, and starts to whine ... please EU I'm so poor, please bail me out. The EU then pays John's debt. Then "twobits" would say "Which John never sees, and the money go immediately to bailing Tom who created the problem in the first place."

mariosg 11y ago
So, what has EU done in the example of "NotableAlamode"? EU has made sure Tom gets his money back, despite the fact that he had recklessly lent money to John to get high interest rates -which John had been providing all along till the Ferarri case. And John's debt is not only the same, but much higher, because EU has forced him to sell off 25% of his property that was providing him money (be that human capital or state assets). So, Tom (EU banks) is bailed out and John (Greece) can never pay back his debt.