A Lesson In Perspective

Over at Zero Hedge, Tyler Durden notes the GOP has figured out that the IMF is footing a pretty big chunk of the bill for the Greek bailout...and the American taxpayer is footing a pretty big chunk of the bill for the IMF.  The GOP's point man on this is South Carolina Sen. Jim DeMint, who's pretty angry.

Right now, 17 percent of the IMF funding pool that the $40 billion bailout is being drawn from comes from U.S. taxpayers. If that ratio holds true, that means American taxpayers are paying for $6.8 billion of the Greek bailout. Although the $108 billion extra that Congress approved for the IMF in 2009 hasn’t yet gone into effect, you can bet that once it does Greek bankers will come to the IMF again with their hat in hand. And, if other European Union countries see free money up for grabs they could ask the IMF for bailouts when they get into trouble, too. If we’ve learned anything from the Wall Street bailouts it’s that just one bailout is never enough.

To hide the bailout from Americans already angry with the $700 billion bank bailout, Congress classified it as an “expanded credit line.” The Congressional Budget Office only scored it as $5 billion because IMF agreed to give the United States a promissory note for the rest of the bill.

As the Wall Street Journal wrote at the time, “If it costs so little, why not make it $200 billion. Or a trillion? It’s free!”

The problem is DeMint is complaining about $6.8 billion dollars when he should be livid with how much BP is going to be costing the American taxpayer thanks to their little oopsie.  Hey Jim, doesn't South Carolina have, you know, a coastline and beaches?

Better hope Magic Box works to stop that spill, otherwise you'll be asking for about that much just for your state in cleanup and damages.  I wonder if DeMint will be complaining when taxpayers are asked to clean up BP's mess.  Probably not.

Second, $6.8 bilion compared to the oh, $2 trillion or so in loans, bailouts and other Fed money promised to the banks is a drop in the bucket.  Maybe if you're worried about future bailouts Jim, you should be supporting the financial regulation bill instead of trying to block it.

You know, the bill that makes the banks pay for their own bailouts.