Greek bailout could cost U.S. big-time

As of late Greece has been in the news often for its inability to solve their debt problem. Bailouts have not helped, as Greece still faces a large debt that is unsettled. It is now to the point that an outsider, (like the U.S.), might have to step in and get them out of bankruptcy. Or, bystanders across the globe can watch as Greece files for bankruptcy. In this article, the discussion is that letting Greece go bankrupt is a scarier idea than getting them out of bankruptcy. Why? Because if Greece does not pay its debts, most likely they will quit the Euro. If Greece quits the Euro, they now have to power to print their own money. "If Greece quit the euro, people would begin to worry: Who's next? Will Portugal quit? Spain? Italy? France? Do you own a 1000 euro deposit in a Spanish bank? Tomorrow that account could be denominated in new pesetas, at who knows what exchange rate. Better cash out today." In turn, the EU would have to take responsibility for the unpaid debt and also take control of the finances of said countries, cutting their spending and raising their taxes. The picture would look like this, a transfer of Greek and other southern European debt to all the people of Europe, Big government spending cuts especially in southern Europe, but also everywhere else, higher taxes everywhere to support the southern European debt, and all of this will be imposed by unelected bureaucrats in Brussels. What all of this means for America is that a successful negotiation is the best because it is extremely difficult to picture an urgent euro bailout without the help of the United States.
Ryan Borchardt
http://www.cnn.com/2011/10/03/opinion/frum-europe-high-stakes/index.html?hpt=hp_c1