Re:Wall St. Helped to Mask Debt Fueling Europe’s Crisis
by anamax on Monday February 15, 2010 @10:51PM
(#1128254)
> Backing those bonds decreases the already shaky credit of the US as a whole.
And, it tells CA that it can go on a binge and get someone else to pick up the tab.
CA does stupid things because there's no negative consequences to doing stupid things. CA would be better off if it didn't do such things. And, if it does, the rest of the world would be better off if such things were funded by volunteers.
The best case is for CA is to wipe out bond holders and be forced to live within its means. The next best case is for CA to wipe out bond holders and then find a new group of suckers to voluntarily fund the next round of crazy. The worst case is for CA to get bailed out by taxpayers.
And, it tells CA that it can go on a binge and get someone else to pick up the tab.
CA does stupid things because there's no negative consequences to doing stupid things. CA would be better off if it didn't do such things. And, if it does, the rest of the world would be better off if such things were funded by volunteers.
The best case is for CA is to wipe out bond holders and be forced to live within its means. The next best case is for CA to wipe out bond holders and then find a new group of suckers to voluntarily fund the next round of crazy. The worst case is for CA to get bailed out by taxpayers.