Grand Rapids, MI -- (SBWIRE) -- 06/10/2010 -- Economic news lately has been tumultuous, to say the least. The stock market plunges and gains have kept us all on the edge of our seats. But one of the biggest headlines has been the financial bailout package for Greece.

Dennis Tubbergen, financial advisor and CEO of USA Wealth Management LLC, a federally registered investment advisory company, notes that each of us may be helping Greece.

“You might be surprised to learn, as I was, that in a roundabout way, American taxpayers may be helping with the Greek bailout,” states Tubbergen.

Tubbergen goes on to explain that a substantial portion of the Greek financing may come from the International Monetary Fund (IMF). And since 40% of the IMF is funded by American taxpayers (and that debt will be junior to current bond holders if rumors are true), we will help to foot the bill.

“Does anyone really think Greece will pay that debt back?” questions Tubbergen. “IMF debt should be senior and no bank should be allowed to roll over debt and reduce their exposure to Greek debt on the back of foreign taxpayers.”

Tubbergen notes the IMF will be giving money to Greece, who will use it to roll over old bonds, letting European banks and funds reduce their own exposure to Greece, while taxpayers all over the world who fund the IMF assume that risk.

As Tubbergen often states in his financial blog, “The economic mess we found ourselves in a few years ago was largely the result of excessive debt, or, as I like to describe debt, borrowing against future production.” He adds, “When economic systems reach debt capacity, the option of spending tomorrow’s production is no longer possible.”

Much of the uncollectible, private debt has already been transferred to the public balance sheet. The next downturn may hit when markets wake up to the fact that much of the public debt is also uncollectible.

“Greece is not alone,” forecasts Tubbergen. “They’re just first. From my perspective, Greece is just the tip of the iceberg with more to come.”

For more information on Tubbergen’s views, visit http://www.dennistubbergen.com.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.