Reply to thread

Message

[QUOTE="upstater, post: 5182452, member: 153"]
This is how it is all over the world.

I did a thorough history of the Greek financial crisis a while back and it was Goldman Sachs deal that sunk them. GS fronted them a bunch of money for currency conversions that reduced their deficit from 3% to 1% (on paper, because the EU stats office deliberately doesn't count certain liabilities as debt). Then GS took a ballon lump sum payment of $10b right when the 2008 crisis was kicking in, and their deficit skyrocketed to 10%+. Ironically, Greece didn't even need to do the deal since they were under the 3.5% budget deficit threshold required to convert to the euro. They just wanted to look better and curry favor with the EU countries who eventually voted them in. And the biggest catastrophe for them is that with a strong currency, light manufacturing fled the country.

This was an "everything went wrong" dance with private equity.

#1. Crap deal with private equity
#2. "Creative accounting" to make the books look good
#3. Strong currency makes businesses close and a lot of job loss
#4. Worldwide financial crisis means no one is going to buy your bonds
[/QUOTE]

Verification

First name of men's bb coach