Euro under new pressure after Spain's debt rating downgraded (dollars, economic, money)

[juppiter]

Euro under new pressure after Spain's debt rating is downgraded | Business | The Guardian

Hopefully this does not spill over to the US. I always knew that this would happen to the Euro. It was obvious to me from the start that it was spread way too thin. However, the weaker dollar has been good for everyone except US tourists. Is there anyone with a better economics background than me who can explain the potential fallout for the US?

[malamute]

Originally Posted by juppiter

Euro under new pressure after Spain's debt rating is downgraded | Business | The Guardian

Hopefully this does not spill over to the US. I always knew that this would happen to the Euro. It was obvious to me from the start that it was spread way too thin. However, the weaker dollar has been good for everyone except US tourists. Is there anyone with a better economics background than me who can explain the potential fallout for the US?

Well - for starters, we're probably going to come up with a few billions of non-existent dollars to bail them out. Just like with Greece.

Bailing out countries who have foolish money like the euro is foolish for us to do. And we're bailing them out for not controlling their spending - which means us spending billions we also don't have.

Why not just accept now that globalism was misguided all along.

[juppiter]

Originally Posted by malamute

Well - for starters, we're probably going to come up with a few billions of non-existent dollars to bail them out. Just like with Greece.

Bailing out countries who have foolish money like the euro is foolish for us to do. And we're bailing them out for not controlling their spending - which means us spending billions we also don't have.

Why not just accept now that globalism was misguided all along.

Agreed 100% with that last point.

Question on the first though - it was my understanding that Greece was bailed out by the other European countries. So would this come indirectly from the IMF? Does the US get re-imbursed for whatever dollars it puts into the IMF?