GREECE HAD HELP FROM GOLDMAN SACHS
The debt crisis has more in common with the credit crisis in the U.S. than one might think. According to a New York Times story, February 13, Greece has sought and found help in the form of innovative financial products from none other than Goldman Sachs.
Greece needed money but its politicians, like politicians everywhere, did not want to be seen as incurring debt. Almost no rules exist as to how countries may find the money to meet their needs.
The bankers invented new financial instruments and gave them names from Greek antiquity. Aeolos, a legal entity created in 2001, helped Greece reduce the debt on its balance sheet that year. In exchange for ready cash Greece gave away future landing fees at the country’s airports. Ariadne, created in 2000, meant forfeiting the revenue from its national lottery. These appeared on the books as sales rather than loans.
There were more such deals, all effectively mortgaging the future of a country with such a proud past, and threatening European and in fact global economic stability.