Greece — The One Biggest Lie You Are Being Told By The Media

(Author: Chris Kanthan. I have also posted a Greek translation of this article. This article has been republished in hundreds of websites and translated into dozens of other languages. All were done without my permission, except for the article at Nation of Change! In the future, please contact me first. )

Every single mainstream media has the following narrative for the economic crisis in Greece: the government spent too much money and went broke; the generous banks gave them money, but Greece still can’t pay the bills because it mismanaged the money that was given. It sounds quite reasonable, right?

Except that it is a big fat lie … not only about Greece, but about other European countries such as Spain, Portugal, Italy and Ireland who are all experiencing various degrees of austerity. It was also the same big, fat lie that was used by banks and corporations to exploit many Latin American, Asian and African countries for many decades.

Greece did not fail on its own. It was made to fail.

In summary, the banks wrecked the Greek economy, and then deliberately pushed it into unsustainable debt … while revenue-generating public assets were sold off to oligarchs and international corporations. The rest of the article is about how and why.

If you are a fan of mafia movies, you know how the mafia would take over a popular restaurant. First, they would do something to disrupt the business – stage a murder at the restaurant or start a fire. When the business starts to suffer, the Godfather would generously offer some money as a token of friendship. In return, Greasy Thumb takes over the restaurant’s accounting, Big Joey is put in charge of procurement, and so on. Needless to say, it’s a journey down a spiral of misery for the owner who will soon be broke and, if lucky, alive.

Now, let’s map the mafia story to international finance in four stages.

Stage 1: The first and foremost reason that Greece got into trouble was the “Great Financial Crisis” of 2008 that was the brainchild of Wall Street and international bankers. If you remember, banks came up with an awesome idea of giving subprime mortgages to anyone who can fog a mirror. They then packaged up all these ticking financial bombs and sold them as “mortgage-backed securities” for a huge profit to various financial entities in countries around the world.

A big enabler of this criminal activity was another branch of the banking system, the group of rating agencies – S&P, Fitch and Moody’s – who gave stellar ratings to these destined-to-fail financial products. Unscrupulous politicians such as Tony Blair joined Goldman Sachs and peddled these dangerous securities to pension funds and municipalities and countries around Europe. Banks and Wall Street gurus made hundreds of billions of dollars in this scheme.

But this was just Stage 1 of their enormous scam. There was much more profit to be made in the next three stages!

Stage 2 is when the financial time bombs exploded. Commercial and investment banks around the world started collapsing in a matter of weeks. Governments at local and regional level saw their investments and assets evaporate. Chaos everywhere!

Vultures like Goldman Sachs and other big banks profited enormously in three ways: one, they could buy other banks such as Lehman brothers and Washington Mutual for pennies on the dollar. Second, more heinously, Goldman Sachs and insiders such as John Paulson (who recently donated $400 million to Harvard) had made bets that these securities would blow up. Paulson made billions, and the media celebrated his acumen. (For an analogy, imagine the terrorists betting on 9/11 and profiting from it.) Third, to scrub salt in the wound, the big banks demanded a bailout from the very citizens whose lives the bankers had ruined! Bankers have chutzpah. In the U.S., they got hundreds of billions of dollars from the taxpayers and trillions from the Federal Reserve Bank which is nothing but a front group for the bankers.

In Greece, the domestic banks got more than $30 billion of bailout from the Greek people. Let that sink in for a moment – the supposedly irresponsible Greek government had to bail out the hardcore capitalist bankers.

Stage 3 is when the banks force the government to accept massive debts. For a biology metaphor, consider a virus or a bacteria. All of them have unique strategies to weaken the immune system of the host. One of the proven techniques used by the parasitic international bankers is to downgrade the bonds of a country. And that’s exactly what the bankers did, starting at the end of 2009. This immediately makes the interest rates (“yields”) on the bonds go up, making it more and more expensive for the country to borrow money or even just roll over the existing bonds.

From 2009 to mid 2010, the yields on 10-year Greek bonds almost tripled! This cruel financial assault brought the Greek government to its knees, and the banksters won their first debt deal of a whopping 110 billion Euros.

The banks also control the politics of nations. In 2011, when the Greek prime minister refused to accept a second massive bailout, the banks forced him out of the office and immediately replaced him with the Vice President of ECB (European Central Bank)! No elections needed. Screw democracy. And what would this new guy do? Sign on the dotted line of every paperwork that the bankers bring in.

(By the way, the very next day, the exact same thing happened in Italy where the Prime Minister resigned, only to be replaced by a banker/economist puppet. Ten days later, Spain had a premature election where a “technocrat” banker puppet won the election).

The puppet masters had the best month ever in November 2011.

Few months later, in 2012, the exact bond market manipulation was used when the banksters turned up the Greek bonds’ yields to 50%!!! This financial terrorism immediately had the desired effect: The Greek parliament agreed to a second massive bailout, even larger than the first one.

Now, here is another fact that most people don’t understand. The loans are not just simple loans like you would get from a credit card or a bank. These loans come with very special strings attached that demand privatization of a country’s assets. If you have seen Godfather III, you would remember Hyman Roth, the investor who was carving up Cuba among his friends. Replace Hyman Roth with Goldman Sachs or IMF (International Monetary Fund) or ECB, and you get the picture.

Stage 4: Now, the rape and humiliation of a nation begin. For the debt that was forced upon them, Greece had to sell many of its profitable assets to oligarchs and international corporations. And privatizations are ruthless, involving everything and anything that is profitable. In Greece, privatization included water, electricity, post offices, airport services, national banks, telecommunication, port authorities (which is huge in a country that is a world leader in shipping) etc.

In addition to that, the banker tyrants also get to dictate every single line item in the government’s budget. Want to cut military spending? NO! Want to raise tax on the oligarchs or big corporations? NO! Such micro-management is non-existent in any other creditor-debtor relationship.

So what happens after privatization and despotism under bankers? Of course, the government’s revenue goes down and the debt increases further. How do you “fix” that? Of course, cut spending! Lay off public workers, cut minimum wage, cut pensions (same as our social security), cut public services, and raise taxes on things that would affect the 99% but not the 1%. For example, pension has been cut in half and sales tax increase to more than 20%. All these measures have resulted in Greece going through a financial calamity that is worse than the Great Depression of the U.S. in the 1930s.

Of course, the ever-manipulative bankers demand immediate privatization of all media which means that the country now gets photogenic TV anchors who spew propaganda every day and tell the people that crooked and greedy banksters are saviors; and slavery under austerity is so much better than the alternative.

If every Greek person had known the truth about austerity, they wouldn’t have fallen for this. Same goes for Spain, Italy, Portugal, Ireland and other countries going through austerity.The sad aspect of all this is that these are not unique strategies. Since World War II, these predatory practices have been used countless times by the IMF and the World Bank in Latin America, Asia, and Africa.

This is the essence of the New World Order — a world owned by a handful of corporations and banks.

So, it’s time for the wonderful people of Greece to rise up like Zeus and say NO (“OXI” in Greece) to the greedy puppet masters, unpatriotic oligarchs, parasitic bankers and corrupt politicians.

Dear Greece, know that the world is praying for you. Vote NO to austerity. Say YES to freedom, independence, self-government, and democracy. Yes, democracy, the word that was invented by YOU!

P.S. (You can also watch this video where John Perkins – author of “Confessions of an Economic Hit Man” – talks about exploitation of Latin American and Asian countries using the same tools of debt-austerity-privatization. He used to do this for a living! )

Check out Deconstructing the Syrian War, my new e-book on the Syrian war, the most consequential war of recent times


      1. You are Right, my Dear TaS! (Went to Your About page to try to get Your name, …did not succeed in that!)

        Paying the price, that is on the one side. But, it all comes because people don’t bother. And it’s not just Greece, either.

        People have enough money for today’s beer. So what if the govt/politicos have piled a billion dollars on their son’s/grand son’s head?

        Can’t even say that is their attitude. They will not even listen to the news.

        Price is right! 😦


        Liked by 2 people

      1. Article is good but fails to state that Greek banks were not active investors of said mortgages instead the 30 billion, that quickly became 80 billion, was used in an obscure stock swap with other European banks to bail them out. Mainly Budesbank, as well as Marfin and BNP. All this prior to 2009.

        Liked by 1 person

    1. Thank you for this piece.

      Austerity has decimated the Greek economy, and caused a severe humanitarian crisis. Privatization, especially of utilities and communication companies to foreign interests, has crippled Greek sovereignty and independence. When you have a country importing almonds and garlic (which both, obviously, can be and previously were produced in Greece), and measures to shut-down family fisheries and vineyards through programs mislabeled “regional development funds” that initially pay participants NOT to produce things in favor of production elsewhere, and you expect that a country’s sole income is olive oil exports and tourism, there will be a problem.

      I have a question, and I can’t seem to find the answer: Why did Greece borrowed money originally? What did they spend the *original* borrowed money on? I ask this in all honesty, because so many people have argued that Greeks took money to pay off extravagant pensions while avoiding paying taxes. While Greek culture is tax avoidant my nature, I find it pretty unbelievable that a country that is 2% of the EU could borrow solely to pay for the lack of taxation. If anyone knows where I can find this info, which hopefully itemizes the reasons the money was borrowed in the first place, please, point me in the right direction!

      Liked by 2 people

      1. Great points, thanks. As for your question, the Greeks were not the paragon of savers but they were not the crazy spenders either. The debt to GDP was 100% in 2008 – not good but certainly sustainable. The U.S. now has the same ratio. But the problem began in the financial crisis of 2008. Even then the Greek govt had enough money to bailout their banks with $30 billion (10% of the GDP). Then, using bond market manipulation, the bankers forced the first bailout. This is sthg hard for people to understand or believe. But attacking the bond market and currencies are done quite frequently. For example, Soros made billions attacking the British Pound in 1992 and then the Asian countries in 1997. Plenty of materials on the web on this topic. Hope that helps

        Liked by 2 people

      2. Thanks for your reply, T&S. Your method of putting statistics in context is helpful.

        I recently saw a 2013 chart (NYT source) depicting Greece as 4th of the 5 “risky” EU economies, those five being Italy, Spain, Ireland, Greece and Portugal in that order. It shows how small the amount Greece owed was, relatively speaking.

        The information that you have shared is very helpful, and puts things in perspective. I was hoping to find a definitive way to put the stats into context as far as spending goes. It would be nice to have something tangible to point to when the narrative portraying greedy pensioners and tax evaders rears it’s head.

        While it’s more than evident that reform is necessary in terms of taxation, the one thing that I simply cannot get past is the human cost of austerity. The shocking spike in unemployment, suicides and poverty brought on my austerity measures is unconscionable in my view. How can paying interest to banks take precedent over human needs is beyond me.

        Thanks again for your insight, it is appreciated!

        Liked by 1 person

      3. For most people, this kind of austerity is new since this is the first time the banking elites have tried it in Europe. However, the exact playbook has been used in Latin America, Asia and Africa numerous times since the 1950s. Read up on Indonesia, Chile, Argentina, Brazil, Ecuador, Panama, Bolivia, Colombia and many, many African countries. Step-by-step same process … EXCEPT … in those countries, a leader like Tsipras would have been assassinated or the U.S. would have invaded to spread some “freedom and democracy.”

        Liked by 2 people

    2. Money does not exist? What garbage. How do you legally differentiate a dollar printed by the treasury and one printed in a homeowners basement? You redefine money and the type of corruption is what happens


  1. While this might be true it is also a fault of the greek government and the greek people. In my opinion the source of the problem is corruption not only within the government, but also in the people. Something that hasn’t changed despite the crisis and I’m afraid it might never will in this country.

    Liked by 2 people

    1. Yes. The main problem in Greece; collecting taxes. In order for a national economy to work, its citizens need to contribute to it. This is not happening in Greece on a sufficient level.

      Fuck the banks, but pay your taxes Greeks! Your country will fail without them!


      1. That’s a false narrative. Even if it were true, all it means that 99% will have less money in their pockets. And all that tax will go to international bankers who will find 10 other ways to bleed your country. Look at all the other countries who followed the austerity programs like slaves – Spain, Italy, Ireland, Portugal etc. Every single one of them has MORE debt, LESS GDP per capita, SMALLER wages, SMALLER pensions etc etc

        Liked by 1 person

    2. During the U.S. financial collapse in 2008 the banking/finance industry held congress hostage with prophesies of doom and gloom if they were not bailed out. They got their bailout financed by the taxpayers and went on to have a series of the most financially lucrative years in that industry EVER. While the rest of the country suffered the worst ‘recession’ since the Great Depression. The only financial institution that was allowed to fail was Lehman Bros. and I always wondered whose campaign they didn’t bankroll so they were allowed to fail first. Perhaps there are issues of government corruption and tax evasion in Greece but that is not what caused the current financial situation in Greece, Spain, Italy and Ireland. OXI!

      Liked by 1 person

    3. I agree and we are asked to disregard the opinions of numerous others in favour one person who, it would appear, is far from a neutral observer in this matter.

      Liked by 1 person

  2. In late 2009, fears developed about Greece’s ability to meet its debt obligations, due to revelations that previous data on government debt levels and deficits had been misreported by the Greek government.This led to a crisis of confidence, indicated by a widening of bond yield spreads and the cost of risk insurance on credit default swaps compared to the other Eurozone countries – Germany in particular.

    The big question is why Greece misreported to the EU.


    1. Well in the UK, it was felt in 2002 when the Euro was established as the common currency throughout the European Union, that Greece had ‘cooked the books’ in order to make their economy look stronger than it really was.

      It was well known that they had ‘misreported’ back then and it was also widely believed that Italy had done the same thing.

      Trouble is, that Germany, with the biggest, strongest economy in the EU, and the de facto leaders of it, knew that Greece had misreported the strength of its economy but was so blindly driven by the goal of a common currency that it deliberately and knowingly overlooked the fraud.

      Germany and other fully committed EU countries, Greece and Italy included, were then proceeding to build a United States of Europe and wouldn’t let some false accountancy stand in their way.

      The UK at best a half-hearted member of the Union thought better of it – noticed that the Emperor wasn’t wearing any clothes – and decided not to touch the new currency with a barge pole.

      Thats why we still use £ pounds.

      Liked by 2 people

  3. As a writer on ethics I have learned that you can’t believe either side, they both spin. And those that claim to be the voice of truth usually aren’t, especially if they then promote some radical politics or religion. The copy on this page is angry, I always get disturbed reading stuff by angry people. From Socialist Workers, anti-Capitalism to ISIS, they preach hate against others by preying on people’s sense of resentment. They blame others and sell a false promise of hope, but what they are all doing is no different from the ones they blame, they are just manipulating others for their own gain. Having interviewed bankers and extreme left wingers, I don’t see much difference, they are all megalomaniacs with psychopathic tendencies.

    Liked by 1 person

    1. Nothing against capitalism. Just against crony capitalism, predatory capitalism and crapitalism. Extreme capitalism becomes socialism – look at America where we have 50 million on food stamps


      1. those fifty million people are paying the price for the fact hat capitalism has winners and losers. every attempt to broaden opportunities for the underclass are defeated by the same people who have driven them to poverty in the first place by systemically limiting opportunities for education and employment

        Liked by 1 person

  4. Note that there is always a recast of the media. Always. Preceding the public appearance of the banksters. Or a creation as in Ukraine. Media have a key role in this mafia system.

    Liked by 1 person

  5. As others have noted above, you forget that the Greek government went on a wholesale spending spree with cheap credit right after getting the euro. And I’m not just talking about the Olympics, it’s the infrastructure created for the Olympics; a lovely new airport for Athens built from scratch, a motorway network, a stunning – and obviously obscenely expensive – metro system in Athens again built from scratch. Central Athens and Plaka being beautified and pedestrianised. The new Acropolis Museum, and the reorganisation and rebuilding of museums all over the country (National Archaeological Museum, Delphi Museum, Olympia Museum, Piraeus Archaeological Museum …. the list goes on).

    All these projects were wonderful for both Greece and for Greek tourism, but all at the same time? Hundreds of billions were obviously spent by a government that doesn’t get 100% of taxes paid to them, since tax avoidance is a national pastime in Greece.

    It doesn’t take a genius to figure out that this contributed hugely to Greece’s current crisis, as well as the greedy German bankers and other reasons outlined in your story.


    1. EVERYONE has debt. Sadly. Until 2008, the Greek debt was under 100% of GDP. In 2008, the Greek govt bailed out their banks with $30 BILLION. So, yeah, they were not broke. They got into more debt because of bond market manipulation and IMF “reforms” . The “reforms” means selling profitable assets to big corporations. So revenue goes down further which means a second bailout. Endless spiral


      1. Even though I agree with many of your points (despite your slightly histrionic and conspiratorial tone) you miss one major fact: the Greek government was LYING about its GDP. So that debt to GDP ratio you speak of means nothing. They were spending money they didn’t have.


      2. The “Greeks” didn’t lie. It was Goldman Sachs using its derivatives and conspiring with the Greek Central bank. A handful of people. So don’t blame the entire country. And guess what? The guy from Goldman Sachs who fudged the numbers using complex derivatives is now the head of ECB. Yeah, his name is Mario Draghi.


    2. Yeah, huge products are great for construction companies which are all German and French, in this case. These are great for Greek politicians and local oligarchs since they get a “commission”.
      Free, cheap money is like a drug. It’s why America has $18 trillion of debt. If the interest rates go to even just 5% or 6%, America will be Greece


  6. It’s easy to live the life of Riley with other people’s money and then, when the river of money stops, blame “austerity”…
    I’m not blaming the Greek population, but their governments from 2009 up to now. In 2009 Greece had a primary budget deficit of €24.4 billion. The austerity measures (from 2012 on) brought Greece to have a primary surplus of €630 million in 2014 (0.4% of GDP).
    And that’s all.
    They didn’t even start to try to reform in order to repay the debts. In 2009 they should have started austerity measures. If they had they would be out of truble by now.


      1. Wasn’t it for the hellenic black hole no bank would risk bancruptcy feeding unnecessary expenses. It’s only fair that a lender gets back his money. And the banks aren’t part of the problem since years, because the debt is due to the States themselves, not to the banks. You can say that the banks were not very understanding, but not that they were not in their right.

        You should explain only one thing: why in the world would someone FORCE greece to accept a debt? What would it be worth? Greece has not exports, Greece has no industries, Greece has no exclusive products (except cheese and olive oil). Greece makes more or less 4% of the EU GDP… Why should anyone think that Greece is a good cow to milk (that is what you are sayying, basicly).


      2. You have to look at the big picture and realize that Greece is not alone in the debt problem. The U.S. has $18 trillion in debt, the world governments have a total of $100 trillion, and the world private debt + corporate debt is $200 trillion. When you see the big picture, you will realize how the path to enslavement by debt is laid out


  7. Sorry, that story ignores history. “In summary, the banks wrecked the Greek government, and then deliberately pushed it into unsustainable debt…” It is a silly story, written by an anonymous writer, without facts to sustain it. It is just a nice spun out fantasy. Did the banks create 40 years of corruption in Greece? Did the banks falsify Greece’s national accounts when it joined the euro? Did the banks reward electorate with higher and higher pensions as populist vote buying? Did the banks create massive tax avoidance, reducing state revenues to dangerous levels?


    I suppose it is useless to note that if the Greeks actually paid their taxes, this crisis would have been avoided.


    1. You are focused on corruption of Greece and NOT the banks? And yes, Goldman Sachs DID IN FACT falsify Greece’s conditions. And the guy who did it – Mario Draghi – is now running the ECB. And Greeks don’t pay taxes? Are you kidding me? Big corporations and banks don’t pay taxes — in TRILLIONS OF DOLLARS.


  8. Bullshit.
    This is a lot of nonsense.
    I am Portuguese, we got to the austerity period and all worked fine.
    Country is recovering very well.
    So, if we could do it, why can’t Greece?
    Why don’t you talk about how on earth can Greece pay higher wages than Portugal when it is actually poorer than us?
    Why was it that Greece was always poorer than portugal and paid lower wages and about 1998-2000 it started to pay much More than we are paid in Portugal? Did they get rich? Did they stroke oil?
    Get real, get serious and face the facts. This is not journalism


  9. I’m afraid that your interpretation of this situation is rather one-sided.
    Nobody forced Greece to borrow, to lie about it’s deficits or to enter into the swap brokered by Goldman Sachs.
    Just as nobody pressured the banks to provide Greece with money or the European officials to bail out the private banks who did it…
    Only now nobody is ready to acknowledge its part of what went wrong. And until they do things will remain stuck…


      1. It takes two to tango… a healthy country is always able to fend off this kind of attacks.
        Isarescu, the head of Romania’s Central Bank, successfully defended the Leu in more than one occasions.
        Another example is the manner in which Hong Kong successfully maintained its peg on the dollar while being able to vary it’s interests by up to 1.5% from that of the US…
        Yes, speculators will attack at the first sign of weakness. That’s their job.
        Just as it’s the job of the government to make it so that the country is able to fend of such attacks.


  10. The beginning of media control

    J.P. Morgan Interests
    Buy 25 of America’s Leading Newspapers
    and Insert Editors
    U.S. Congressional Record February9, 1917, page 2947
    Congressman Calloway announced that the

    J.P. Morgan interests bought 25 of America’s leading newspapers, and
    inserted their own editors, in order to control the media.

    The CHAIRMAN: The Chair will recognize the gentleman from Texas, a member ofthe [defense appropriations] committee.

    Mr. CALLAWAY: Mr. Chairman, I ask unanimous consent to insert in the Record a statement that I have of how the newspapers of this country have been handled by the munitions manufacturers.

    The CHAIRMAN: The gentleman from Texas asks unanimous consent to extend his remarks in the Record by inserting a certain statement. Is there any objection?

    Mr. MANN: Mr. Chairman, reserving the right to object, may I ask whether it is the gentleman’s purpose to insert a long list of extracts from newspapers?

    Mr. CALLAWAY: No; it will be a little, short statement not over 2 ½ inches in length in the Record.

    The CHAIRMAN: Is there any objection?

    There was no objection.

    Mr. CALLAWAY: Mr. Chairman, under unanimous consent, I insert into the Record at this point a statement showing the newspaper combination, which explains their activity in the war matter, just discussed by the gentleman from Pennsylvania [Mr. MOORE]:

    “In March, 1915, the J.P. Morgan interests, the steel, ship building and powder interests and their subsidiary organizations, got together 12 men high up in the newspaper world and employed them to select the most influential newspapers in the United States and sufficient number of them to control generally the policy of the daily press in the United States.

    “These 12 men worked the problems out by selecting 179 newspapers, and then began, by an elimination process, to retain only those necessary for the purpose of controlling the general policy of the daily press throughout the country.They found it was only necessary to purchase the control of 25 of the greatest papers. The 25 papers were agreed upon; emissaries were sent to purchase the policy, national and international, of these papers; an agreement was
    reached;the policy of the papers was bought, to be paid for by the month; an editor was furnished for each paper to properly supervise and edit information regarding the questions of preparedness, militarism, financial policies and other things of national and international nature considered vital to the interests of the purchasers.

    “This contract is in existence at the present time, and it accounts for the news columns of the daily press of the country being filled with all sorts of preparedness arguments and misrepresentations as to the present condition of the United States Army and Navy, and the possibility and probability of the United States being attacked by foreign foes.

    “This policy also included the suppression of everything in opposition to the wishes of the interests served. The effectiveness of this scheme has been conclusively demonstrated by the character of the stuff carried in the daily press throughout the country since March, 1915. They have resorted to anything necessary to commercialize public sentiment and sandbag the National Congress into making extravagant and wasteful appropriations for the Army and Navy under false pretense that it was necessary. Their stock argument is that it is’ patriotism.’ They are playing on every prejudice and passion of the American people.”

    Liked by 1 person

  11. If anyone is in any doubt how this shit works, Download ENRON: The smartest guys in the room (2005), then apply their psychotic practices, to the International Financial Banking System. QUESTION, How many people realise that the IMF is actually the American Private Banking System? It will only get worse, as Capitalism is struggling to control and confuse the people of the world anymore, of their greedy, hideous motives and agendas. I predict a Worldwide Internet crash, in the near future ( caused of course by cyber terrorists), yesterday’s Wall St crash was the start of the manipulation of the internet. Too much information available now, for their liking. The only way to win this and be in support of Greece’s unfair plight, is to stop feeding the CAPITALIST MONSTER the money it craves, purchase only what you need, stop taking credit, live within your means. IT WONT TAKE THAT LONG, TO SEE THE RESULTS, Go Greece, MY HEART IS WITH YOU.

    Liked by 1 person

  12. I’m sorry, but your categorization of just about every event in that timeline is factually incorrect.

    The investment banks weren’t as much the culprit of the subprime meltdown, as much as the guy left holding the bag when the lights came back on. The real failure was on the part of mortgage originators that were issuing loans to folks with less-than-accurate underwriting information, and the greedy/short-sighted investors (pension funds, sovereign funds, investment funds) that were buying the supposed high-quality chunks of CLO’s trying to squeeze a little bit more yield out of their portfolio…..despite the overwhelming indication that the return profile was too good to be true. So when the defaults started to pile up on the lower rated tranches of CLO’s it became clear that instead of getting a wider yield spread via risk arbitrage on the high rated tranches, these CLO’s really just sold you a riskier piece of paper that you wanted.

    That realization, and subsequent downgrading of those tranche ratings, caused pressure on the bond market it two ways: 1) Because of benchmark rating requirements for debt, many banks and funds were forced to sell or write off these CLOs asset, 2) Shaken trust in rating agencies, suspension of repo markets, downward price pressure because of a flood of securities, and brokerage suddenly ticking below their asset coverage levels sucked all of the liquidity out of the debt market nearly overnight. What resulted was a banking system handcuffed because it legally didn’t have the capacity to lend, and that effectively shut out all the non-bank lenders as well. So I don’t know how think there was an option other than bailout or that it wasn’t in the best interest of the citizens for a bailout to occur, because both of those points are patently false.

    The larger systemic problems for Greece are two-fold; 1) Being beholden to the Euro, yet not being able impact that money supply in any way shape or form (a systemic issue the Euro zone must address to survive), and 2) A service-based economy bereft of meaningful exports. I won’t disagree that Greece could probably do for some belt tighten, but if we’re being honest, most of Europe could stand just as much austerity, with Germany being one of the most egregious despite its judgmental stance.


  13. Many of the names mentioned in this post belonged or belong to the Bilderberg Group, if you compare the actions of the Mafia to the actions that have brought Greece to it; knees look no further than the New World Order as proposed by the Bilderberg Group. Check out YouTube. the Internet. The names and the activities

    Liked by 1 person

  14. Unfortunately, everything you wrote is indeed true. Except for the line about democracy, it simply does not exist. If it did they’d make it illegal.


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