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. At some point the so-called cross currency swaps will mature, and swell the country's already bloated deficit.
Der Spiegel
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jesus, have there been any prosecutions or at least investigations of GS by now???
ReplyDeleteGreece wanted to increase social spending, and used derivatives to borrow the money to pay for it. They needed to use derivatives because of their EU Maastricht treaty obligations didn't permit them to borrow the money with bond issuances.
ReplyDeletePresumably Guest1 opposed Greece social spending.
<span>Presumably Guest1 opposed Greece social spending.</span>
ReplyDelete--------------------
Only presumably..But then again, you have no idea if she really does..
Why else would someone oppose Greece borrowing money?
ReplyDeleteBTW, I didn't know if this was LegalI.
True. You should start writing about derivatives again.
ReplyDeleteThe world remains at considerable risk; every part of it.