The IMF must have just realized they are the last institution in line and with no fiscal authority.
IMF sticks a knife into the Greece bailout deal http://t.co/Onu1zKm6dx pic.twitter.com/GWRXPIaX2D
— Management Today (@MT_editorial) July 15, 2015IMF sticks a knife into the Greece bailout deal http://t.co/Onu1zKm6dx pic.twitter.com/GWRXPIaX2D
— Management Today (@MT_editorial) July 15, 2015
3 comments:
I guess the US and UK told LeGrande that they were not going to be placed on the hook, since they are big capitalizers of IMF and would be on the hook.
I don't know about that. It strikes me that with the IMF all that happens is that SDRs that are issued to obtain funds to bail a country just stay in issue and the IMF balance sheet remains expanded.
SDRs are claims on other member countries' funding and class as an asset of the country holding the SDR.
Tom it would be a howl if the IMF went bust and then had to go hat in hand to the US Congress for a recapitalization...
Can you imagine that!? I would PAY to watch that!
Neil my suspicion is that they need the NIM to "live off of..." just like the CBs....
CBs could always go buy more govt securities with newly issued reserves and live off the govt interest payments, but the IMF cant do that... the IMF would be busted out... LOL! That would be hilarious to watch!!!
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