Quote:
Originally Posted by KlenTelaris
Eurozone will never break up,after all those problematic countries would be bailed out even if they are not part of eurozone.After all,they giving them loan,not free money and i dont see any problem with it.
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Let's not forget that by lending them money that didn't previously exist they are expanding the money supply and decreasing the value of our money. Let's also not forget that by lending out money at sub-market prices they are essentially encouraging more bad investments. Let's also not forget that the governments accepting the loans aren't the ones that will be held accountable if things go wrong (even though they are the ones who will be spending the money) and that those governments won't be the ones that will have to pay back those loans, but the people living in those countries.