US Taxpayers Just Paid $780 Million To Fund The Latest Greece Bailout Tranche (paid to hedge funds)

[stockholmer]

http://www.zerohedge.com/article/us-taxpayers-just-paid-780-million-fund-latest-greece-bailout-tranche


The IMF is delighted to announce that it just approved a €3.2 billion disbursement of cash for Greece, its fifth, as part of the €12 billion in money that Greece needs in order to continue operating in the months f July and August.

And just for what purpose will this money be used, one may ask? Well, as explained a few weeks ago, in Greek Math: €12 Billion In, €18.2 Billion Out the entire amount http://www.zerohedge.com/article/greek-math-%E2%82%AC12-billion-%E2%82%AC182-billion-out-and-thats-if-impossible-happens will be promptly recycled by global financial institutions in the form of debt maturities and interest payments, which amount to €18.2 billion in the months of July and August. Simply said ECB, EU and IMF money in, money owed to bankers out.

The kicker: 17.09% of the money coming from the IMF, comes from, that's right dear US taxpayer, you (and since 21% of the quota contributions allocated to the IMF are deemed "non-usable", the actual number funded by the US is likely much higher).

But this plot has a bonus kicker: as we reported on Wednesday http://www.zerohedge.com/article/greek-rollover-bailout-proposal-verge-collapse-after-germany-puts-swaps-idea-back-table , the actual Greek debt is no longer owed by European banks to the extent it had been previously expected: a development that threatens to scuttle the entire second Greek bailout plan http://online.wsj.com/article/SB10001424052702304803104576427792756033886.html as currently proposed. So as the banks have been selling Greek debt, who has been buying? Mostly hedge funds, such as everyone's favorite John Paulson. So to recap: US taxpayers have just paid out about $780 million of the $4.6 billion in order to fund interest owed to... hedge funds.

The WSJ provides http://online.wsj.com/article/SB10001424052748704866204575224421086866944.html a pretty chart explaining who is responsible for what:




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[Turbineguy]

1. Advice from Goldman Sachs

It's the gift that keeps on taking.

[SoutherDem]

2. Isolationism

I have never been for isolationism, but at some point you have to think within your own boarders.

[Quantess]

8. Something the USA seems incapable of,

in any capacity.

[Mojorabbit]

9. + 100 nt

[ixion]

3. with 248 trillion in toxic derivatives floating around out there

what's a few trillion between friends.

[malletgirl02]

4. Bailout

The U.S. has it own massive economic problems, but it is bailing out Greece? This doesn't make any sense. The United states can't even pay off its own massive debt without raising the debt ceiling.

[malletgirl02]

5. IMF

Also I don't know why anyone still listens to the IMF when many of its ideas were responsible for the financial crisis in the first place.

[stockholmer]

6. welcome to the wonderful world of privately controlled global central banking via the odious US Fed

BIS, IMF, World Bank, ECB, etc etc etc.

:thumbsdown:

[blkmusclmachine]

7. Crooks, one and all.

[suffragette]

10. This starts to answer something I've been wondering

As I was reading the articles about whether or not there would be what was termed a bailout for Greece, I kept encountering descriptions that said if it did not happen the German and French financiers and banks would have to take a "haircut" if it did not go through.
Once it did go through, most articles talked about the money coming from European citizens/taxpayers, and much of that was about German citizens/taxpayers, and going to Greece. And some of those and the comments seemed to be trying to funnel any dissatisfaction and ire the citizens may feel at needing to fund this at the Greek citizens as profligate people who get more than their due and pay lower taxes, have earlier retirement, etc.

However, if that money is going from there directly to pay off German and French financiers (or now American ones) than it seems to me that the money is mostly passing through Greece on its way to the pockets of the people who were making the risky "investment" decisions and otherwise gambling with their and their banks' money. So (if it was still primarily the German & French banks,the people paying (the people of the countries funding this) were having their money go into the pockets of the already wealthy financiers in their own countries, but were having their anger diverted to a scapegoat - the Greeks. Meanwhile the Greek citizens face harsh austerity measures and the sell-off of their public owned assets at below rate prices.

If American hedge funds are now involved, than someone like this guy is more than likely one of the people vacuuming up some of that money:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=439&topic_id=1388416&mesg_id=1390874