Tuesday, October 25, 2011

US Taxpayers May End Up Footing Part of the EU Bailout Bill

The International Monetary Fund is considering taking part in a special investment vehicle being proposed by the euro zone bailout fund but has not made a decision yet, euro zone officials said, according to Reuters.

The SPIV would be open to private capital, sovereign wealth funds and the IMF to add their funds, according to the proposal seen by Reuters.

"The IMF is a possibility -- they could be one of the investors, they could be the host of this fund," a second euro zone source told Reuters.

There is some talk that the IMF may just be the administrator for contributions from others, but there is also the possibility that the IMF may participate in the bailout directly. The US is the largest contributor to the fund at 17.7%. That means a direct contribution by the IMF would result in US taxpayers playing an important role in the bailout of the PIIGS.

As if we don't have enough pigs to deal with stateside.


  1. The EU officials are clueless, 3 weeks ago an equally clueless Head of European division of the IMF said the IMF was considering setting up a 200bn fund to buy Italian and Spanish bonds, then an hour later issued a retraction stating that it was not in the IMF mandate to buy debt, they could only issue loans to countries. Since investing in this SPIV would not be a loan to a country, they are not allowed to do this, just give it a day or so until this rumor is forgotten.

  2. Stealing money from the tax livestock and handing the loot over to bums is an "investment"....

  3. It won't only be U.S. taxpayers who pay for this. It will be anyone holding U.S. dollars. The Bernanke's know that they will just print money for this. Somehow, magically, there won't be any inflation! /sarc

    On the plus side, pretty soon my home mortgage will be worth about $100 in today's dollar. If I can just manage to tread water in the meantime....