Can somebody explain to me the logic in bailing out a country’s banks with 100 BILLION euros, but then charging them record high interest rates on the loan, so that next time they are due to pay money back they require another bailout, on which you charge even MORE record high interest??? I don’t understand.
I could be missing it completely, but to me this seems like the financial version of trying to plug a bursting dam, but slowly running out of fingers? Am I right in thinking that eventually these bailouts are just not going to be enough and the whole thing is just going to collapse inwards on itself?
Anyone who understands finance better please explain?