So taxpayers are asked to foot the bill again. European governments have decided on a bailout for Greece, so they can stay in the EMU (European Monetary Union), where they should not have been accepted in the first place.
It was Goldman Sachs, who else, who helped Greece to cook the books in order to make the 3% of GDP debt-threshold the EMU prerequisited for entering the EUROzone. Fully aware of their doings they, at the end of last year started to lay their bets on a default of Greek debts. This sent Greek bonds yields spiralling out of control, the latest was a 18% yield, a percentage Greece cannot afford to pay to borrow money to run their country. And all banks were busily selling Greek bonds to their customers, who in turn very much appreciated a (then) 5% yield to the almost nothing in interest you get on your money from your local bank.
Now what? Will the bonds default and leave the investors out in the cold? Will there be write-offs, so Greece can draw a little breath and get their debt situation sorted?
Fat chance. Deutsche Bank boss Ackermann has already issued one of his famous warnings of impending financial apocalypse if Greece wasn’t bailed out and should default on their debt. So, this knight in shining armour is saving the Eurozone’s economy from armageddon? Or is he helping the investors who bought the bonds from Deutsche Bank and by this saving the Banks reputation, their business and his bonus?
Not only Goldman sucks.
And: Portugal is next.