Don't Flush MY Money Down The Greek Toilet

This is from a free email newsletter by John Mauldin.  An incredible resource on economics and finance:

Should the US Bail Out European Banks?

The obvious answer to the above question, at least on this side of the Atlantic, is no. But that is the plan being foisted on US tax-payers by the International Monetary Fund. The IMF wants to create a $250 billion dollar bailout fund for Greece, Portugal, et al that the US will contribute roughly 20% to. This fund will loan money and that IMG debt will be subordinate (junior!) to regular Greek debt, so when Greece does default, and they will, the IMF is the last in line to get paid.
Where will the money go? It will buy mostly Greek rollover debt from European banks getting out of their Greek debt. It is a back door bailout for German and French banks. The US Senate voted 94-0 that the US should not fund any such debt if the Treasury cannot certify the probability of getting repayment. If the Obama administration allows this funding to go through, the hue and cry will be large. It is bad enough that we have to pay for Freddie and Fannie (already $400 billion and counting!). Not meaning to be churlish, but the French and Germans can bail out their own banks.

Don't let them tell you we are bailing out the Greeks - we are once again bailing out the big bankers (didn't Pres Obama refer to them as "Fat Cats?") but this time FRENCH and GERMAN FAT CATS.  And the sad fact is that this bailout has no chance of saving the Greeks - it's just money down the toilet.