Our First Fifty Years Foreign bailouts by the IMF and the U.S. Treasury only delay the day of reckoning. Meltzer predicts that the Asian bailout will precipitate future crises. But some of the losses are shifted from the lenders to the IMF and, therefore, to the taxpayers in developed countries who supply the capital that the IMF mismanages. Meltzer believes that bailouts by the U.S. Treasury and the International Monetary Fund encourage fiscal recklessness.
Investors have learned that they get bailed out, so they continue to invest.
Every working stiff in America knows that. Maybe they did. Maybe Mom and Dad were always there with a helping hand and an open checkbook to bail them out whenever they got into trouble. Well, those days are over. They're big boys now, and it's not Mom and Dad's money that they're wasting anymore.