Guest View
User: Pass: | become a member


If We’re Dismantling Too Big To Fail…

If We’re Dismantling Too Big To Fail…

Courtesy of Karl Denninger, The Market Ticker 

… why are we creating a huge international bailout fund?

The Executive Board of the International Monetary Fund (IMF) today approved a ten-fold expansion of the Fund’s New Arrangements to Borrow (NAB) and the transformation of the Fund’s premier standing credit arrangement into a more flexible and effective tool of crisis management. The NAB will be increased by SDR 333.5 billion (about US$500 billion) to SDR 367.5 billion (about US$550 billion), representing a major increase in the resources available for the Fund’s lending to its members.

For a nation that claims to be ending "too big to fail" sticking our people with $100 billion of the cost of this new bailout fund - a fund that we allegedly will never need because we’re going to fix the "too big to fail" problem - is rather interesting, no?

More importantly, what’s the rush?

If the financial system has been "stabilized", if everything is ok, if the stock market is going up because the economy and financial system is healthy, why does the IMF suddenly need $500 billion, with 1/5th of it, roughly, provided by American tax money?

Or is the little ugly here that they know the problems haven’t been and won’t be fixed, and that at any time - all it takes is a trigger - there will be yet another rush for the exits, and this one no single sovereign government will be able to stop?

 

Tags: , , , ,


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!




You must be logged in to make a comment. Sign up for a free sample membership or log in.

Dashboard

 Sector Performances (Today)

 Thermal Imaging

Multi-Sector Conglomerate-0.44 %
 
Basic Materials-0.49 %
 
Consumer Staples-0.57 %
 
Aerospace-0.68 %
 
Computer and Technology-0.75 %
 
Retail/Wholesale-0.82 %
 
Finance-1.08 %
 
Industrial Products-1.08 %
 
Business Services-1.09 %
 
Auto/Tires/Trucks-1.13 %
 
Medical-1.41 %
 
Utilities-1.52 %
 
Consumer Discretionary-1.64 %
 
Construction-2.69 %
 
Transportation-3.28 %
 
Oils/Energy-3.40 %