Bailout
in sentence
528 examples of Bailout in a sentence
First came the Greek crisis, followed by the Greek
bailout.
LONDON – The good news is that a Greek default, which has become more likely after Prime Minister Alexis Tsipras’ provocative rejection of what he described as the “absurd”
bailout
offer by Greece’s creditors, no longer poses a serious threat to the rest of Europe.
Second, the eurozone’s
bailout
bill continues to rise.
Perhaps most worryingly, Europe finally recognized the principle – long followed by the IMF – that countries in
bailout
programs should not be penalized on interest rates, but the same principle was not extended to countries that are not yet in
bailout
programs.
Alternatively, Spain and Italy will be driven inexorably into
bailout
programs.
Many state and local governments in poorer regions of the country are at risk of bankruptcy unless the federal government undertakes a massive
bailout
of their finances.
Instead, it has agreed to establish
bailout
mechanisms such as the European Financial Stability Facility and the European Financial Stabilization Mechanism, which can lend up to €500 billion ($680 billion) combined, with the International Monetary Fund providing an additional €250 billion.
Any credible
bailout
plan must require creditor banks to accept that they will lose at least half of their money.
And yet when the
bailout
is presented the other way around, with German taxpayers asked to backstop reckless Italian or Spanish banks, somehow it is supposed to be an act of solidarity.
The ESM is Ireland’s insurance policy as we work our way out of the
bailout
program with the “troika” (the European Commission, the ECB, and the International Monetary Fund) and return to the markets.
For example, the Dodd-Frank legislation specifies that all large financial institutions should draw up meaningful “living wills” – specifying how they could be allowed to fail, unencumbered by any kind of bailout, if they again became insolvent.
That led to the creation of a more permanent
bailout
facility, the European Stability Mechanism.
The key reforms for the IMF remain (1) improving governance by reducing European representation while increasing that of Asia, and (2) focusing the Fund’s mission on monitoring and surveillance rather than as a direct provider of
bailout
loans.
According to most economists and political commentators, the latest Greek
bailout
was little more than an analgesic.
Neither is it to deny the economic criticism of the
bailout
provisions presented by progressives like Joseph Stiglitz and conservatives like Hans-Werner Sinn.
Having achieved this, EU leaders have no further reason to impose austerity on Greece or strictly enforce the terms of the latest
bailout.
On paper, the Greek
bailout
will impose a fiscal tightening, thereby aggravating the country’s economic slump.
If budget targets were strictly enforced by
bailout
monitors, which seems unlikely, this improvement in conditions for private borrowers could easily compensate for any modest tightening of fiscal policy.
France, by contrast, tends to support the idea that the state should be free to intervene when needed, running a deficit or even providing a
bailout
to prevent a crisis.
To be sure, the eurozone needs more than a
bailout.
In a July referendum, Greek voters delivered the outcome for which Tsipras campaigned, soundly rejecting the conditions – including strict austerity – which Greece’s creditors had demanded in exchange for a new
bailout.
Tsipras accepted a
bailout
program that was, in some ways, even tougher than the one that voters had rejected.
It needs no
bailout.
Moral Dilemmas for Fannie and FreddieNEW HAVEN – The United States government’s takeover of mortgage giants Fannie Mae and Freddie Mac constitutes a huge
bailout
of these institutions’ creditors, whose losses have ballooned as house prices continue to plummet.
Why is this
bailout
happening in the world’s most avowedly capitalist country?
Most importantly, it is not clear that the
bailout
will actually impose any net costs on US taxpayers, since it may prevent further systemic effects that bring down the financial sector and, with it, the world economy.
Is that outcome morally superior to a
bailout?
The Fed should take care to prevent any breakdown of liquidity while keeping inflation under control and avoiding an unjustified taxpayer-financed
bailout
of risky bank loans.
Evidence of either irrational exuberance or market expectations of a
bailout
is already mounting.
America’s failures provide important lessons to countries around the world, which are or will be facing increasing problems with their banks:- Delaying bank restructuring is costly, in terms of both the eventual
bailout
costs and the damage to the overall economy in the interim.
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