The Mess That Greenspan Made - Part 30

Here’s that BBC piece from a few years back about Goldman Sachs’ financial engineering that helped Greece join the eurozone in 2001 despite an already big pile of debt.

Well, at least they had a really swell Olympics back in 2004…


Thursday Morning Links

Greece talks ‘ruled out’ before vote – BBC
A Bankrupt Greece Is Struggling to Stay Afloat – NY Times
Hollande sees quick Greek deal if ‘yes’ wins – AP
Merkel-Tsipras Sparring Leaves Greece in Limbo – Bloomberg
Europe has suffered a reputational catastrophe in Greece – Telegraph
Defiant Varoufakis Says He’ll Quit If Greeks Endorse Austerity – Bloomberg
Greece’s Referendum: The Price of Five Years of Cowardice – Spiegel
The Bill: Germany Faces Billions in Losses If Greece Goes Bust – Spiegel
Don’t Reward the Greedy Vulture Funds Who Invested in Puerto Rico – NR
Why Congress Should Let Puerto Rico Declare Bankruptcy – New Yorker
Government Debt: Jefferson And Gallatin Were Right – Daily Caller
Macy’s parts ways with Donald Trump – WaPo
How About a Global Currency? – Bloomberg

Global stocks gain as US data eclipse Greek risk – AP
Four things investors should know for July – USA Today
Boom times for healthcare mergers bring bankers more fees – Reuters
Why investors need to get out of North America – FP
A Venture Capital Giant Says: Bubble? What Bubble? – NY Times
Chinese stocks tumble again, ignoring Beijing’s blandishments – Reuters
Gold at 3-1/2 month low on dollar ahead of U.S. payrolls data – Reuters
Former US Mint Director Clueless On Gold In Fort Knox – BullionStar
Gold unruffled by Greece as trading range enters 4th month – Mineweb

Robust jobs report could instill confidence – USA Today
U.S. Job Creation Index Holds in June at Record High of +32 – Gallup
Here’s What to Watch for in Today’s Jobs Report – Bloomberg
China manufacturing PMI unchanged at 50.2 in June – xinhuanet
The ‘Demerging’ Greek Economy – Bloomberg
India’s economy picking up; needs more reforms – Business Standard
Ukraine Says Russian Generals Lead Separatists – Bloomberg
7 Things to Know About the $500M Mega-Mansion in Bel Air – Forbes
Cash Homebuyers Pull Back as Foreclosures Vanish in U.S. – Bloomberg
Sweden cuts key interest rate again citing Greek crisis – AP


The Neverending Crisis/Bailout in Greece

It’s not hard to see where this is all headed in Greece – the Sunday referendum will result in a “Yes” vote (for the bailout package rejected by the Greek government last week) and the result will be an interim bailout prior to another election where the people will again vote for what sounds good (i.e., promises of a better deal than they vote for on Sunday).

This Bloomberg story provides the following flowchart:

There should really be a box at the top, something like, “Greece fails to meet terms of bailout”, along with a loop from the “Next bailout” box at the bottom.

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Wednesday Morning Links

Greece makes concession but no deal seen before Sunday vote – AP
Greece Compromise Bid Faces Resistance as Trust Fades – Bloomberg
Greece, Missing I.M.F. Payment, Is Called Effectively in Default – NY Times
Greek Pension Rationing Begins; Poll Shows Tsipras Backed – Bloomberg
Goldman Sachs Doesn’t Have Clean Hands in Greece Crisis – Wall Street on Parade
Why Greeks Still Want to Keep the Euro, in One Chart – Wolf Street
Greece: Where Has All The Money Gone? – Confounded Interest
While the World Watches Greece THIS is Happening – Capitalist Exploits
Puerto Rico Bonds Fall to Record Low as Debt Crisis Worsens – Bloomberg
Donald Trump Could Lose $78.5 Million For Pissing Off Mexicans – Vice News
Mexico pulls out of Trump’s Miss Universe pageant – CNN/Money
The Case for Polygamy Begins –

Markets bounce on leaked bailout memo – USA Today
Bill Gross Warns About Liquidity In Next Crisis – WSJ
What moves the stock market? – voxeu
China’s biggest stock market just lost 5% in a single hour – CNN/Money
Young Fund Managers Lose Out in China Stock Rout – WSJ
Entire S&P 500 Free Cash Flow Is Going Back To Shareholders – Zero Hedge
Gold around four-week low on dollar, hopes over Greek crisis – Reuters
Sorry gold bulls, metal’s best forecaster expects more declines – Mineweb
China targets counterweight in gold trade with yuan fix – Reuters
Gold: A Safe Haven No More? – GoldSilverWorlds

The Economy’s Missing Metrics – NY Times
China’s Economy Signals More Weakness – WSJ
Why Jeb Bush’s growth strategy could work for the UK – Telegraph
For Germans, economics is still part of moral philosophy – Vox
Carney: UK stability outlook has ‘worsened’ in light of Greece – BBC
Home Price Gains Ease in April According to the S&P/Case-Shiller – S&P
Affordable Housing Crisis Grows as Apartment Rents Skyrocket – alternet
Fed’s Bullard Shrugs Off Greek Events, Points to Chance of Sept Rate Increase – WSJ
The state of global monetary policy, in one sentence – Vox
Confirmation bias and bubbles – Money Illusion


Grisis, Granks Grosed, Grexit Grossible

Just think … someday we’ll be able to have a little chuckle as we look back at the long-running Greek financial crisis and marvel at what policy makers were able to accomplish within a dysfunctional system that should never have allowed Greece to join it, the nation only being able to do so thanks to some Goldman Sachs financial engineering.

From Martin Rowson at The Guardian.

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