How Goldman Sachs Destroyed the Greek Economy and Created a Water Crisis in Detroit
How Goldman Sachs Destroyed The Greek Economy And Created A Water Crisis In Detroit
Posted on July 29, 2015 by girl du jour
A few days ago The Nation published an article by Robert Reich detailing how Goldman Sachs profited not only from the Greek debt crisis, but the Detroit water crisis, interest rate swaps in Oakland and the implosion of the world economy.
Let’s start with Greece:
In 2001, Greece was looking for ways to disguise its mounting financial troubles. The Maastricht Treaty required all eurozone member states to show improvement in their public finances, but Greece was heading in the wrong direction. Then Goldman Sachs came to the rescue, arranging a secret loan of 2.8 billion euros for Greece, disguised as an off-the-books “cross-currency swap”—a complicated transaction in which Greece’s foreign-currency debt was converted into a domestic-currency obligation using a fictitious market exchange rate.
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