Anonymous
Anonymous asked in Business & FinanceCorporations · 9 years ago

the book indicates that the IMF has bailed out many countries,what is meant by bailout?

any pros and cons of the IMF doing these bailouts?

1 Answer

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  • Anonymous
    9 years ago
    Best Answer

    A 'bailout' is when an entity simply transfers usually non-existent funds to another entity to make the bailed-out entity appear to be financially stable. It's all 'shadows and mirrors'. No actual money changes hands - one entity reduces a number on their books, and the other entity increases a number on their books. It's a sham, but most people don't realize the 'ins and outs' of governmental accounting.

    It's all on paper. As I said, no money actually changes hands.

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    Wouldn't you like a bailout too ?? (Sing to the melody line of the old Dr. Pepper TV commercial LOL :-)

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