Argument: Greek bailout will not stop contagion in Europe
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"Bailouts Don’t Prevent Contagion", Kathy Lien, May 2010 "The market is obsessed with contagion fears and unfortunately, bailouts don’t always prevent contagion. If you recall, the 1982 Mexico bailout did not stop the spread to Brazil, Venezuela and Argentina, and the IMF rescue package for Thailand in October 1997 did little to stop the spread to Indonesia and Korea."
"Five Reasons Not to Support a Bailout of Greece", The Heritage Foundation, May 2010 "Many other nations in the EU are in frighteningly similar circumstances with their sclerotic labor markets and bloated public finances. The Mediterranean contagion is already underway, with Portugal, Italy, and Spain in its sights. Credit markets lulled to sleep for years by soothing official statements are now wide awake and are having none of it, becoming increasingly intolerant of any country with suspect finances. Worse, sensing serious exposed weaknesses, speculative wolves are gathering for the kill, driving down the Euro and driving up borrowing costs of the weak. Putting out the fires in Greece cannot stop the contagion when there is fuel to burn elsewhere."