Are more US Government (pronounced US Taxpayer) bank bailouts on the way?
Are we going to hear the “too big to fail” mantra again?
The default of Greece now appears imminent, Spain and Italy have had their ratings cut, public opposition to bailouts is mounting in Germany, Slovakia, and elsewhere, it is becoming increasingly likely that Europe will be unable to contain the sovereign debt crisis.
When this happens, US financial institutions will have over $640 billion of exposure to the European crisis.
The Federal Reserve, the FDIC, and others will be called on to once again prop up financial institutions here in the US and, by extension, around the world.
In 2009 alone, the Fed furnished dollar liquidity to US banks to the tune of $1.25 trillion in printed money, $442.7 billion of which went to foreign banks.
Obama, Tax Cheat Geithner and Bernanke must not be allowed to fire up the printing presses once again to prop up the financial institutions responsible for this financial crisis.
Congress should be pro-active in this coming crisis and commitments should be secured from the Fed governors that there will be no more bank bailouts.
US taxpayers and their children and grandchildren should not be made to pay for the poor decisions made by foreign banks that bet poorly on the debt of socialist governments like Greece.
The bankers made the bad bets. They should pay. Not US taxpayers.
***Ed Randazzo, is a nationally syndicated author. He has been a conservative activist and consultant for over 30 years and is currently the Chief News Editor of Life and Liberty Media***