You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

Reply #15: Wall St. Helped Greece to Mask Debt Fueling Europe’s Crisis [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
tpsbmam Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-14-10 08:20 AM
Response to Original message
15. Wall St. Helped Greece to Mask Debt Fueling Europe’s Crisis
Source: NY Times

Wall Street tactics akin to the ones that fostered subprime mortgages in America have worsened the financial crisis shaking Greece and undermining the euro by enabling European governments to hide their mounting debts.

As worries over Greece rattle world markets, records and interviews show that with Wall Street’s help, the nation engaged in a decade-long effort to skirt European debt limits. One deal created by Goldman Sachs helped obscure billions in debt from the budget overseers in Brussels.

Even as the crisis was nearing the flashpoint, banks were searching for ways to help Greece forestall the day of reckoning. In early November — three months before Athens became the epicenter of global financial anxiety — a team from Goldman Sachs arrived in the ancient city with a very modern proposition for a government struggling to pay its bills, according to two people who were briefed on the meeting.

The bankers, led by Goldman’s president, Gary D. Cohn, held out a financing instrument that would have pushed debt from Greece’s health care system far into the future, much as when strapped homeowners take out second mortgages to pay off their credit cards.

It had worked before. In 2001, just after Greece was admitted to Europe’s monetary union, Goldman helped the government quietly borrow billions, people familiar with the transaction said. That deal, hidden from public view because it was treated as a currency trade rather than a loan, helped Athens to meet Europe’s deficit rules while continuing to spend beyond its means.

Read more:

I'm speechless at this point. It just never ends -- is the US now destined to not only bring its own downfall but that of countries it's enveloped in our boundless greed, corruption, shortsightedness & stupidity? Look at what the enrichment of a few in the US has done and is doing to the world. I want to love my country, but it's pretty tough these days.
Printer Friendly | Permalink |  | Top
  -Wall St. Helped to Mask Debts Shaking Europe jannyk  Feb-13-10 05:31 PM   #0 
  - We need to send guilotine specs out for competitive bidding.  aquart   Feb-13-10 05:43 PM   #1 
  - great minds think alike  unabelladonna   Feb-13-10 06:34 PM   #4 
  - :FRSP:  Po_d Mainiac   Feb-13-10 07:48 PM   #7 
  - Simplify, people. Simplify  Big_Mike   Feb-14-10 04:13 PM   #22 
     - The FRSP is truely portable....Trees ain't :grin:  Po_d Mainiac   Feb-14-10 07:20 PM   #28 
  - I'll write the specs and have them ready Monday morning. n/t  WestSeattle2   Feb-13-10 11:24 PM   #13 
  - have I said how much I hate Goldman Sachs lately?  UpInArms   Feb-13-10 05:52 PM   #2 
  - Note that the headline says Wall St. not Goldman Sachs  Robbien   Feb-13-10 06:41 PM   #5 
  - and the exposure of that fear is in your sig line  UpInArms   Feb-13-10 09:57 PM   #10 
  - Nice catch.  No Elephants   Feb-14-10 06:36 PM   #25 
  - As to free markets, I cannot agree, though.  No Elephants   Feb-14-10 06:19 PM   #23 
  - All this secrecy is bad for the country. I know when I ask for the truth  jwirr   Feb-13-10 06:02 PM   #3 
  - Most people don't want to know how deep the Rabbit Hole goes.  TheWatcher   Feb-13-10 09:23 PM   #8 
     - What is truly amazing..  sendero   Feb-13-10 10:07 PM   #11 
        - I'm not sure sendero. You can lead a horse to water but you can't make him THINK.  TheWatcher   Feb-13-10 10:47 PM   #12 
           - How is accepting that we are witnesses different from giving up?  No Elephants   Feb-14-10 06:25 PM   #24 
              - If you think for one minute that I am now, or will ever give up, you could live a thousand years  TheWatcher   Feb-15-10 04:03 AM   #32 
  - My Grandfather said "don't borrow money. But, if you have to borrow,  Downwinder   Feb-13-10 06:52 PM   #6 
  - Just when you think they can't be any more EVIL  FreakinDJ   Feb-13-10 09:51 PM   #9 
  - What Wall St. regulatory reforms have Democrats attempted since the meltdown?  No Elephants   Feb-14-10 06:44 PM   #26 
  - Just when you think they couldnt get worser  skoalyman   Feb-14-10 12:11 AM   #14 
  - Wall St. Helped Greece to Mask Debt Fueling Europe’s Crisis  tpsbmam   Feb-14-10 08:20 AM   #15 
  - I agree. Chances international community will prohibit bad financial stuff?  elleng   Feb-14-10 08:20 AM   #16 
  - More criminality from wall street?  Confusious   Feb-14-10 08:20 AM   #17 
  - No, No, No, it's just Business As Usual and one more stepping stone of evidence that "The Recovery"  TheWatcher   Feb-15-10 04:08 AM   #33 
  - Ahhh.....  DeSwiss   Feb-14-10 08:20 AM   #18 
  - I wonder if Obama will ever begrudge them their bonuses  meowomon   Feb-14-10 08:20 AM   #19 
  - IIRC, AIG some bonuses were reduced and people who had been promised them sued.  No Elephants   Feb-14-10 06:53 PM   #27 
  - "I'm speechless at this point. It just never ends..."  Goldstein1984   Feb-14-10 08:20 AM   #20 
  - That's their M.O. and nobody's stopping them. n/t  Triana   Feb-14-10 08:20 AM   #21 
  - +10  Liberal_in_LA   Feb-14-10 07:20 PM   #29 
  - So you absolve Greece from the shennaigans?  Mudoria   Feb-15-10 05:30 AM   #34 
  - k+r  Blue_Tires   Feb-14-10 07:49 PM   #30 
  - Late K&R --  defendandprotect   Feb-14-10 08:28 PM   #31 

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC