Bailout
in sentence
528 examples of Bailout in a sentence
In March, the AfD, founded in 2013 as a Euroskeptic party critical of the Greek bailout, sent shockwaves through the country when it finished second or third in regional elections in three German states.
One key lesson ignored in the Greece debacle is that when a
bailout
becomes necessary, it should be done once and definitively.
The IMF learned this in 1997, when an inadequate
bailout
of South Korea forced a second round of negotiations.
In Greece, the problem is even worse, as the €86 billion ($94 billion) plan now under discussion follows a €110 billion
bailout
in 2010 and a €130 billion rescue in 2012.
The ECB
bailout
program has enabled the people of the peripheral countries to continue to live beyond their means, and well-heeled asset holders to take their wealth elsewhere.
This may relieve some pressure, but it only shifts the problem from the ECB
bailout
fund to the community of states.
The ESM is a sure way to bring Europe to its knees, because the longer
bailout
loans continue, the longer the GIPS’ current-account deficits will persist, and the more their external debts will grow.
The banking system would not survive this without help, so the EU’s
bailout
activities should be refocused accordingly.
Europe has similarly expanded its regional
bailout
facility.
In relative terms, Greece received most of Europe’s
bailout
money and showed the largest increase in unemployment.
If you believe that the blame lies with greedy bankers and unthinking investors, lulled by the promise of a government bailout, or with a market driven crazy by irrational exuberance, we had studied all this too, in great detail.
Quite apart from the potential
bailout
costs, some argue that financial hypertrophy harms the real economy by syphoning off talent and resources that could better be deployed elsewhere.
If those creditor losses are large and spread so as to undermine the broader financial system, pressure for a government
bailout
will mount.
The Swiss government could afford the bailout, just.
Just consider what must be overcome: economic divergence and deepening recessions; irreversible balkanization of the banking system and financial markets; unsustainable debt burdens for public and private agents; daunting growth and balance-sheet costs in countries that pursue internal devaluation and deflation to restore competitiveness; asymmetrical adjustment, with moral-hazard risks in the core and insufficient financing in the periphery fueling incompatible political dynamics; fickle and impatient markets and investors; austerity fatigue in the periphery and
bailout
fatigue in the core; the absence of conditions for an optimal currency area; and serious difficulties in achieving full fiscal, banking, economic, and political union.
With minds concentrated by fears of another 1930’s-style Great Depression, America’s political leaders developed, virtually overnight, a $700 billion
bailout
plan to resuscitate the country’s rapidly deflating financial sector.
In particular, they should study and avoid the mistakes made in the AIG
bailout
in late 2008.
The AIG
bailout
was one of the largest in history, with the US government injecting more than $100 billion into the company.
The
bailout
was brought about by AIG’s large losses on derivative transactions with financial institutions, mostly sophisticated players such as Goldman Sachs and Spain’s Banco Santander.
Such a
bailout
would have cost an estimated $500 billion or more, and the main beneficiaries would have included big financial firms.
Investors should not worry, they argue, because the current
bailout
mechanism – the European Financial Stability Facility (EFSF) – has worked so far without any haircut for bondholders, and will continue to be applied until about 2013.
Holders of Greek debt maturing now are repaid courtesy of the €110 billion
bailout
program, and holders of Irish bank bonds have been given a guarantee by the Irish government, whose promises have in turn been underwritten by the EFSF.
Perhaps fearing even greater social unrest, Sisi has yet to meet the conditions set last November by the International Monetary Fund as part of a $12 billion
bailout.
And the European Central Bank will also blithely continue its
bailout
policy in terms of giving loans to the eurozone’s troubled members and purchasing their government bonds.
Second, from a debt-holder’s point of view, a government
bailout
is better.
Even talk of a government
bailout
reduces the debt-holders’ incentive to act, making the
bailout
more necessary.
Forcing a debt-for-equity swap or debt forgiveness would be no greater a violation of private property rights than a massive
bailout.
Only a month ago, in another cliff hanger weekend, Russia received a major IMF and G-7
bailout
package; important reforms were promised, a measure of confidence was restored.
The key difficulty is the ECB’s “no bailout” clause – the ban on aiding an insolvent member-state government.
A unilateral blanket
bailout
would stress the banking union, stretch public finances, and leave the Italian banking system with its structural weakness.
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