#233: To Solve Debt Problem, Europe Borrows More Money




Planet Money show

Summary: <p>Europe is borrowing money to bail out countries that got in trouble by borrowing too much money.<br><br>On today's Planet Money, Satyajit Das explains that European countries aren't actually putting their own money into that big euro-zone bailout fund. Instead, the fund will borrow from investors around the world — the same investors who are growing wary of lending to a bunch of countries in Europe.<br><br>What's more, the fund will be guaranteed by the countries that use the euro. So the more the fund is used, the more countries that are already struggling — countries like Spain and Italy — will be on the hook for potential losses.</p><p>Note: This podcast originally aired December of '10.</p>