What's Happening in Greece?

SUBHEAD: Greek union workers strike. They want the bankers to pay national debt. Image above: Recent union worker street protests against Greek government wage cutbacks. From (http://www.pslweb.org/site/News2?page=NewsArticle&id=13411) By staff on 13 February 2010 on MichaelMoore.com - ( http://www.michaelmoore.com) The Greek government wants workers to pay by raising pension age and cutting workers' bonuses, which is often a large percentage of their incomes. They also called for a hiring freeze. But the Greek workers are made as hell and they're not going to take it so they took to the streets instead. Video above: CNN report on Greek debt protests on YouTube.com From (http://www.youtube.com/watch?v=R_A1JzPWXgk) .


Anonymous said...


EU investigating Goldman Sachs involvement with Greek Problem:

The European Union has asked Greece to explain reports that it engaged in derivatives trades with US investment banks that may have allowed it to mask the size of its debt and deficit from EU authorities.

Goldman Sachs made up an exchange rate that allowed the Greeks to look as though they were only engaging in a currency swap when, in effect, they were getting more than they should have from the trades in credit.

Anonymous said...

Goldman's Debt Swaps Are 'Destabilizing': Economist Says
Wednesday, 17 Feb 2010
By: Antonia Oprita

The European Commission should thoroughly investigate the case of debt swaps involving Greece and Goldman Sachs, as these types of operations are destabilizing financial markets, Simon Johnson, Professor of Entrepreneurship at MIT Sloan School of Management, told CNBC.com.

Goldman Sachs was widely reported to have arranged a debt currency swap transaction for Greece at the beginning of the past decade, providing it with money up front in exchange for higher payments later.

The reports sparked the European Union's wrath and the group requested Greece to explain the debt swaps arrangements by Feb. 19.

"That's clearly a huge affront to the EU," Johnson, who propposed 10 questions for the EU investigation on his web site Baselinescenario.com, told CNBC.com.

"It's more than an insult, it's fundamentally destabilizing," he said, adding that the debt swaps were "undermining what the EU, Maastricht want to achieve."

Goldman Sachs officials declined to comment.

Under the Maastricht rules, EU member states' budget deficits must not exceed 3 percent of gross domestic product (GDP), while public debt must remain under 60 percent. Press reports suggested that the swap arranged by Goldman allowed Greece to push its debt problems into the future.

Make Goldman Pariah?

The European Commission could make entities that had transactions with Goldman Sachs over the past 10 years declare those transactions fully or suspend the US investment bank from European trading, according to Johnson.

"I think Goldman is just the front of a much larger story here," he said. "All similar arrangements by other banks should be investigated. There should be a full-scale investigation."...

* Wall Street Helped Cover Up Debts

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