Who is to bear the losses?

posted by
June 30, 2011
Adam Smith Institute
by Philipp Bagus  
Posted in Commentary

"Will banks, that bought government bonds, finally be the bearer of losses because governments default on their bonds? Will governments suffer the losses as they lose in power when they are forced to auction off public resources and reduce their spending? Or will taxpayers bear the losses? And finally, which countries’ taxpayers will bear the losses? A huge struggle has started in the Eurozone on how to split the losses between governments, banks and tax payers in the periphery and the core." (06/30/11)


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