Hungary: Thanks For The $25 Billion Bailout

Reading about national bailouts helps put our bailout in perspective. At least we just had to bailout our banks, not the whole nation.

Reuters: A larger-than-expected bailout of Hungary by
the IMF and European Union settled nerves in the bloc’s ex-communist countries
on Wednesday, though the regional fallout of the financial crisis looked to have
some way to run.

The $25.1bn rescue deal, the biggest for an emerging market economy
since the global crisis began, was the first for an EU member and dwarfed the $2bn and $16.5bn sums offered earlier to fellow strugglers Iceland and Ukraine.

The agreement will force Hungary to make painful budget cuts that could
worsen the already grim economic outlook of an impending recession and analysts
still wonder whether others in the region may yet need propping up.

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