Bailout costs will be a burden for years

FT/Alan Smith & Stephen Foley/08-08-17

A decade after the credit crisis began, it will still be years before there is a final reckoning on the costs of the government bailouts of the financial sector that followed.

The International Monetary Fund took a snapshot of the costs of the bailouts in 2015, calculating the extra debt taken on by governments relative to the size of their economy. The fund also calculated how much had been recouped by that point two years ago.

…In one country — the United States — taxpayers were already up on the deal…

Elsewhere, governments such as Ireland and Greece are not likely to recover the full amounts and will be working through the costs, borne in the form of higher public debt, for years to come.

PG View: Another ongoing drain on growth . . .

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