When Greece Met Goldman

[Joanne98]

IF YOU LIE DOWN WITH DOGS, you'll get up with fleas. Goldman Sachs and the Greek government lay down together, and now the European Union suffers from a plague of fleas.

In 2001, Greece wanted to dress up its finances to qualify for admission to the European Union and to trade in its tarnished drachmas for shiny new euros. Politicians and bureaucrats could see the advantages of borrowing in a currency made strong by the strength of the big German and French economies. The EU also makes generous subsidies to uncompetitive industries in its member countries -- especially the poor countries, and especially in agriculture.

Greece was spending enthusiastically and taxing ineffectually. It could not qualify to become a member of the euro zone because its deficits were too high.

Enter Goldman Sachs, a firm that lives to help its customers do what they want, even if it isn't in the clients' best interests. Some clever young bankers in Goldman's London office turned Greek dross into something more attractive -- not gold exactly, more like gilded dross. Their deal converted inconvenient billions of dollars of Greek debt into currency hedges that weren't reported as national liabilities.

http://online.barrons.com/article/SB126722853223352667.html

[upi402]

1. Had to look up dross;

impurity: worthless or dangerous material that should be removed

So are 'reporting' entities worthless dross as well yet?

[Po_d Mainiac]

2. my bad....thought u wrote dress :shrug: