A world in economic crisis

The stench that is Goldman Sachs

Posted in dodgy swaps and derivatives, European Union, Goldman Sachs, Greece, United Kingdom by Aussie on February 16, 2010

Over the past year I have heard the name of Goldman Sachs in less than flattering terms. It is for that reason that I have noted the involvement of Goldman Sachs with the Greek Government, and a cover-up of the financial deficit in Greece. This cover up really stinks.

The Mail Online makes the following comment about the activities of Goldman Sachs and Greece:

Goldman Sachs struck a secret deal with Greece to help it mask its vast debts, it emerged yesterday.

The Wall Street giant is claimed to have reaped as much as £192million in fees by entering a complex currency transaction in 2001 that helped Athens borrow cash without putting it on the books as a loan.

The so-called ‘swap’ deal, while permitted under EU rules, helped Greece meet eurozone limits on government borrowing.

However, it should be noted that other European countries have also been involved in similar activities. Now if one looks at the various European countries that are now in crisis, one has to ask the obvious question: Were they involved in a similar swap deal that had the intention of masking the size of the country’s budget deficit?
Countries such as the U.K. are still feeling the pain of the FGC in 2008. That collapse had a lot to do with derivatives and swaps. I am not in a position to talk about the use of these derivatives and swaps because they are new financial instruments. However, what seems to be clear is that their use has not been for a good purpose. What is also clear that a Wall Street firm such as Goldman Sachs has obtained huge amounts of benefit as a result of participating in these deals.
The fact that the swaps are not new, and they have been used all over Europe makes me question what happened to the other merchant bank Beare Stearns. Was it this kind of swap that then defaulted that caused the collapse of Beare Stearns? At this stage, until I can find more information, I have to say that I have no idea on that subject, but I do want to know more about why it collapsed.
This information regarding Goldman Sachs and their dealings with governments all over the world is quite relevant to the present economic crisis. This bank has been used to mask government debt. When this happens there is good reason to be suspicious about what is going on in any country which is about to end up in financial collapse.

3 Responses

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  1. charlesrowley said, on February 17, 2010 at 7:36 pm

    Goldman Sachs is a corrupt company elevated to bank holding company by Ben Bernanke at the US Fed. I imagine that Lloyd C. Blanfein, the creepy Chairman and CEO of Goldman Sachs is giving Athens a wide berth as street riots and strikes embroil the city as a result of his bonus-seeking corruption.

    • ozzieaussie said, on February 17, 2010 at 8:07 pm

      I think that there is a lot more to learn about the shenanigans of Goldman Sachs. The name keeps cropping up everywhere. It has also cropped up in relation to the creation of carbon credits and the corrupt European trading in carbon credits.

  2. cigna said, on February 25, 2010 at 5:24 pm

    Just look at the numbers; Greek Deficit 25 Bil euros EU deficit 1.6 Tr. euros

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