President Barack Obama on Tuesday…pledged U.S. support to help tackle the country’s debt crisis. …After a meeting with German Chancellor Angela Merkel, he stressed the importance of German “leadership” on the issue – a hint that he expects Berlin to help – while expressing sympathy for the political difficulties European Union countries face in helping a struggling member state.…”we have pledged to cooperate fully in working through these issues, both on a bilateral basis but also through international and financial institutions like the IMF.”Not just no, but HELL NO! This is the auto bail out writ large. This would require at least $100 billion dollars just to make a dent in the profligate spending practices of the moribund Greek government.
What makes this development so unpleasant is that this new bailout (Greece already has been bailed out several times, with both direct and indirect handouts) will make things worse. Another bailout will be a case of throwing good money after bad. And it will exacerbate the economic damage by delaying the economic reforms that are needed to put Greece’s economy in better shape.Here's a graph linked to in the article that will explain just how much the EU has sunk into the PIGS of Europe.