Quote:
Originally Posted by Tinordi
It's not black and white at all actually. We aren't being asked to loan directly to insolvent governments. We're being asked to up the contribution to a reserve fund in case of a cascading bank run in one of the big economies. The IMF is a key institution in the international monetary system to maintain stability.
Your approach is the cut of my nose to spite my face policy. Sure we can act indignant and not help out to build a fund that could overwhelm a national banking system with liquidity or we can recognize that a banking collapse in a big EU country would be bad for everyone.
This has nothing to do with bailing out profligate governments. This is to avert a banking collapse spurned by political and economic uncertainty.
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That is a fair characterization, but the fact is that the problem could at least be mitigated by the issue of Euro-bonds. The Germans refuse to back that action though. While you might see this as an amateur opinion, I have hard time thinking that Canada should help build a bailout fund when there is a pretty clear option that some involved parties just don't want to do.