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> But TAARP was much larger than what the Greek bailout ever needed to be. And the EU's gdp is larger than the US' TARP paid itself off as the US economy is al
by drzaiusapelord 11y ago
> But TAARP was much larger than what the Greek bailout ever needed to be. And the EU's gdp is larger than the US'
TARP paid itself off as the US economy is almost always a sure bet. The chances of the Greeks paying off their debt is pretty much zero. These are very different situations.
- irixusr 11y agoAre you sure the chances are zero? Greece has made a lot of sacrifices over the past five years and could have a surplus, if not for the interest rate of the debt. So restructure it like the German one was: long payment plan, low interest and payments dependent on exports. Then they'll pay it off too! Btw, the interest payment is the reward for risk. The risk is default of the lender and inability to access credit for the debtor. German banks gambled badly, tough.
- fnordfnordfnord 11y agoIt looks a lot more like the housing bubble to me, with banks loaning crazy sums to NINJA borrowers. Or the recent muni bond default thing in the US where banks setup finance deals with unsophisticated and or corrupt local officials that they knew couldn't be paid for, and then wanted to keep the ordinary stiffs on the hook when it went sour.