"A Primer on the Greek Crisis: the things you need to know from the start until now", Anil Kashyap, University of Chicago, Booth School of Business, June 29th, 2015
1) How did Greece get into such trouble?...
To accompany that:
"Greek Debt Crisis: How Goldman Sachs Helped Greece to 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. At some point the so-called cross currency swaps will mature, and swell the country's already bloated deficit.
Edit: these were not just regular cross currency swaps
> But in the Greek case the US bankers devised a special kind of swap with fictional exchange rates. That enabled Greece to receive a far higher sum than the actual euro market value of 10 billion dollars or yen. In that way Goldman Sachs secretly arranged additional credit of up to $1 billion for the Greeks.
http://faculty.chicagobooth.edu/anil.kashyap/research/papers...
"A Primer on the Greek Crisis: the things you need to know from the start until now", Anil Kashyap, University of Chicago, Booth School of Business, June 29th, 2015
1) How did Greece get into such trouble?...
To accompany that:
"Greek Debt Crisis: How Goldman Sachs Helped Greece to Mask its True Debt"
http://www.spiegel.de/international/europe/greek-debt-crisis...
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.