The Ponzi world is in full effect, with Europe's massive bailout program announced last night. Basically, in case you don't get this - the ECB (European Central Bank - Europe's version of our Federal Reserve) will buy the crappy assets no one else wants to buy. It's like TARP for Europe, only their problem is that the "toxic assets" are not complicated synthetic structured mortgage bonds - it's their own currency and the debt of their constituent countries!
Solving debt problems by printing more money... Again... As if that will solve the problem - which, remember, is INSOLVENCY... I guess we (the U.S.A.) can't complain, though - after all, we wrote the book on Ponzi bailouts. (related: see FNM's earnings from last night). The Fed and Helicopter Ben originally created this plan and implemented right here on our home soil, buying mortgage backed securities and treasury bonds, and then, when they finally called it quits on that program, simply using Fannie and Freddie to overpay for mortgage loans in a relentless attempt to prop up the housing market.
I know I'm not the only one who remembers the classic public service announcements from the 80's, where the father finds drugs in his son's room and confronts him:
Of course, Europe learned the Ponzi bailout model by watching us... For a change, I'm not the only one using the term "Ponzi" this morning - check out TPC and Jesse.
Also, my friend Ted wanted me to link to this SnL segment where there's a good bit on Greece at the end (3 minutes in): "Really? With Seth & Amy"
"Really Greece - you're in crippling debt and you don't want to make spending cuts? Really? Where do you think your money is going to come from? Royalties for inventing civilization? Really? Your only exports are olive oil, takeout coffee cups, and Zach Galifinakis.
And so the Ponzi Scheme goes on, Yet people will still be surprised the next time the market crashes.