Wall Street helped Greece mask its true debt

Goldman Sachs helped the Greek government to mask the true extent of its deficit with the help of a derivatives deal that legally circumvented the EU Maastricht deficit rules.

Investment banking in the US has become a matter of robbing both the client and the public.

At some point the so-called cross currency swaps will mature, and swell the country’s already bloated deficit.

Creative accounting took priority when it came to totting up government debt.Since 1999, the Maastricht rules threaten to slap hefty fines on euro member countries that exceed the budget deficit limit of three percent of gross domestic product. Total government debt mustn’t exceed 60 percent.

The Greeks have never managed to stick to the 60 percent debt limit, and they only adhered to the three percent deficit ceiling with the help of blatant balance sheet cosmetics. One time, gigantic military expenditures were left out, and another time billions in hospital debt. After recalculating the figures, the experts at Eurostat consistently came up with the same results: In truth, the deficit each year has been far greater than the three percent limit. In 2009, it exploded to over 12 percent.

Source: Der Spiegel

My comment:

American Investment Baking has a funny way of making money. They first rob their clients, and than make Washington force all the taxpayers to pay the final bill.

The Lawlessness of American Capitalism can best be expressed by the money-makers in Goldman Sachs.

The story about how criminal banker in American took 100 million USD from Greece for hiding its actual debt figures, is now a month old.
But it is still a brilliant story for all who like the hear the truth about the criminals who govern the Wall Street.

Jesus correctly said that love of money is the root of all kinds of evil. All kinds.

Todays news makes The Wall Street into the financial version of “The Muppet show”.

Greg Smith, an executive at Goldman Sachs resigned, calling the bankers evil. He claims Goldman Sach’s calls its own clients “muppets”. The bankers only love their own bonus deals, and do not care if the client will win or loose playing their games. The commission for their crimes will be paid anyhow.

It normally take a year or so before the client understand that He do not understand the “financial instruments” he one year back was convinced by Goldman Sachs, he had to purchase.

Written by Ivar

One thought on “Wall Street helped Greece mask its true debt

  1. Yes, Goldman Sachs, J.P. Morgan, Bank of America/Merill Lynch, the defunct Lehman Bros. et.al. took all of us for a ride. Seniors lost because their pension funds invested in the schemes that the big banks knew were bound to fail (in fact, Goldman even sold short against some of the schemes that they peddled–a cynical move that deliberately took advantage of their clients). And the taxpayers really took it on the chin as governments were “forced” to bail out the “too big to fails” or face a lockup of the financial system. Unless the Lord comes, our grandchildren will be paying the tax bill for the enormous amount of money that was handed by our government to these rapacious scoundrels. Worse than the tax bite will be the Federal Reserve’s inflation that will continue to shrink the dollar because of the $26 TRILLION that IT has given to the big banks. This is simply another kind of tax that will deprive everyone of the value of their savings.

    The worst part about it is that the same “too big to fail” banks did this as a repeat of the same type of scam from the 1980s. In that one, they practically forced loans (at a VERY high rate of interest) on Third World nations–knowing that, eventually, those nations would come to the end of their ability to pay. When those nations inevitably defaulted, the big banks came crying to the U.S. government who obligingly bailed them out.

    We have allowed the “foxes” to “guard” the “hen house” for far too long. We should have dismantled the extraordinary power of the big banks when they became “too big to fail”. If they are too big to fail, then they are too big to exist in a system that simply will not work in the interests of ordinary people when monopolistic power is granted to a privileged few. They are thieves. And they simply do not care if the poor starve because of their uncaring greed. That makes them murderers as well. The love of money…

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