The huge US Government bailout program from 2008 only helped the large banks, auto industry and giant institutions such as AIG and several foreign central banks from going under. Because they were all deemed “to big to fail” at the end of the day, however, nothing was solved and the bailouts amounted to nothing. These mega banks and companies only lined their own greedy corporate pockets and left the American taxpayers holding the bag.
It happened to be Greece’s over consuming public sector and sinking private sector that created Greece’s financial problems from the start. Surely they will become the 1st domino in a huge chain of dominoes to fall. Stating this, chances are high that when the crisis point is reached in the Euro-zone it will be the US Government’s own politicians coming in to handout the final bailout to the European investors further punishing the American public.
US Banks have a total estimated value of over one trillion dollars at risk within all the Euro-zones banks combined. Due to all Central Banks strongly insisting on concealing debt with more credit the risk of the Euro itself is in imminent danger of collapsing. Would the Federal Reserve be held accountable if the Euro fails and consequently takes the US dollar down with it?
The time is coming soon where all banks will be facing tough times again and their free ride will be over; you can be assured of that. As the Euro is slowly destabilizing the people in Greece are starting to wise up. They are now being seen forming bartering systems for local trade and services within their own communities. By avoiding the use of fiat currency all together, they are re-discovering what sound money really is. This is one positive way to take away control and currency manipulation from central banks and the inflation that goes along with it.
Sadly, if left in the hands of politicians they will try to dominate and control the currency using legal tender laws. The public at large will quickly notice that having to survive increased inflation and taxation that they are involuntary subjected too becomes that much harder. The only real solution left is for the bankers to take their beatings and losses now. So the innocent people are not left on the hook again to pay for their past mistakes. These losses should be limited, but all agreed upon debt should be paid up in full. Instead of the corporate greed cycle, being repeated over and over again. While profits keep getting siphoned off to line the pockets of the corporate lackeys.
There are no other answers; this is the only answer left in which there is any chance for recovery. Persisting to bailout the banks so they continue to lose money while driving up debt, and then forcing this debt back upon the taxpayers as before, will create a time bomb that will explode and once it blows the US Dollar will surly go down with it.