Tag Archives: Mario Draghi

Greece’s Problem Is More Complicated than Austerity – HBR

July 28, 2015 By in Austerity, Business Administration, Democracy, Growth, Neoliberal, People, Politics Tags: , , , , , , , 1 Comment
German Logo of the ECB.

German Logo of the ECB. (Photo credit: Wikipedia)

This is an outstanding article by Michael Jacobides, professor of entrepeneurshship and innovation at London Business School, published by HBR.

Greece’s Problem Is More Complicated than Austerity – HBR.

The article concludes that ‘by forcing the government remove institutional barriers to competition and innovative the deal will create a sound basis for economic growth and development’.

The historical summary of the Greek crisis is excellent, especially the role of the ECB and the IMF, who protected German and French banks exposed to Greek debt – this was at the potential cost of European taxpayers.

Let me ask an open question:

When will the troika (ECB, IMF and EC) be held accountable for their mistakes in Greece?

Thoughts?

How Goldman Sachs Profited From the Greek Debt Crisis | The Nation

July 19, 2015 By in Austerity, Business Administration, Central banks, Euro Crisis, Fiscal Policy, Foreign Policy, Greece, People, Politics Tags: , , , , , , , , , 1 Comment
English: Logo of The Goldman Sachs Group, Inc....

English: Logo of The Goldman Sachs Group, Inc. Category:Goldman Sachs (Photo credit: Wikipedia)

Whilst this news is not new, this article is well worth reading – it provides some amazing detail. Check it out!

via How Goldman Sachs Profited From the Greek Debt Crisis | The Nation.

According to the article, Goldman Sachs, the US investment bank, made EUR600 million for helping Greece to window dress borrowings. It seems the swap instruments were the wrong bet after the 9/11 attacks caused bond yields to crash. By 2005, Greece owed double the original debt. Another interesting twist is that the deal was restructured in 2005 by the managing director of Goldman’s international division – this was Mario Draghi, the current head of the ECB. It’s the ECB that is providing massive financial support for Greece’s banks so that they can open next Monday.

It all seems a bit incestuous. Remember thet a large part of the first two Greek bailouts went to helping large French and German banks, rather than to help Greece rebuild her economy.

Perhaps Greece really is a special case and deserves some extra help?

Thoughts?