Origins of The Current Crisis

Earlier today, our pal Koos Jansen sent out a link to this terrific Dutch documentary from 2012. If you need a reminder of how and why the crisis in Greece has reached these current levels, then please take the time to watch.

The video features commentary from some notable figures including,

  • Yanis Varoufakis, the current Greek Finance Minister but, back then, was just an "economist".
  • Nomi Prins, author and former Goldmanite. TFMR A2A guest earlier this year.
  • William Cohan, author and former Goldmanite. Same dude who was allegedly sitting on Andy's silver whistleblower story.
  • Nick Dunbar, financial writer for Bloomberg.

Anyway, the point of the documentary is to demonstrate the deleterious effect of Goldman's involvement in disguising Greek indebtedness while Greece was applying for admittance into the EU. To that end, even earlier today ZeroHedge was noting that the ECB continues to stonewall on Goldman's involvement in the swaps fraud:

Therefore, it is very important that you take some time to watch this video. You'll learn some history and gain a greater understanding of the origins of this current crisis. Thanks again to Koos for bringing it to our attention.



Turd Ferguson's picture

More. New from ZH

murphy's picture

I'm back

1st after Turd

Mr. Fix's picture

So does that make me second, or third?

I'm only guessing here, just wild speculation, but  could it be borrowing money you don't have, to pay for all of the entitlements for people who won't work over the course of a couple of decades have anything to do with this? devil

Or maybe it has something to do with printing money out of thin air, and lending it to governments while charging interest, creating a scenario where by there is never enough money in existence to pay off your debts. I've heard there's a lot of that going around these days. wink

Marchas45's picture

Me Third

You Second. Keep Stacking

cowlez's picture


Turd et al--

Im amazed at the number of talking heads who are "shocked" today that the European markets and the overall situation in Europe is the disaster that it is. I really think that they actually have believed the horseshit that they have been spewing for years related to Greece and the Eurozone that everything is fixed and everything is fine---the concept that central banks and the derivative market are interconnected still eludes them, even on a day like today. It would be laughable, except these are the "experts" who are leading the sheep to the slaughterhouse with every bought- and- paid-for line they excrete. Amazing.

Billy C 

bikerdoc's picture

White House: No federal bailout for Puerto Rico

WASHINGTON (AP) -- The White House threw cold water Monday on the notion of bailing out Puerto Rico from its financial crisis, instead urging Congress to consider changing the law so the island can declare bankruptcy...more

SilveryBlue's picture


What breaks my heart is that the people who are suffering now are most likely NOT the major beneficiaries of the bribes. The largess will have been concentrated much, much higher up than street level - if it's even in the same country.

Terabyte's picture

As has been the case from the beginning.....'s actually the people who should have known better that caused this whole Greek fiasco.  Playing CYA all the way.  I don't like what it can do to us, but there's no room for sympathy for the bankers.   


"Some IMF economists had misgivings about lending to Greece in 2010 within the constraints of the so-called "troika" of lenders, where the Fund would be the junior partner to the European Central Bank and the European Commission.

"IMF board members also protested the "exceptional" size of the program, as Athens did not meet the Fund's criteria for debt sustainability, meaning it would have trouble repaying.

"Yet swayed by the fear that contagion in Athens could spread to French and German banks, the IMF agreed to participate in a joint 110-billion-euro bailout of Greece with the Europeans.

"'The Europeans have a third of the voting rights (at the IMF), and they have appointed the managing director since the beginning, so essentially it is the governance that has driven the Greek program," said Lombardi who is now with the Canada-based Center for International Governance Innovation.

"Later, the Fund admitted that its projections for the Greek economy had been overly optimistic. Instead of growing after a year of austerity, Greece's economy plunged into one of the worst recessions to ever hit a country in peacetime, with output falling 22 percent from 2008 to 2012."

4 oz's picture

An origin of crisis

Fred Hayek's picture

All time low short interest in GLD?

Turd, over at the Daily Coin, Rory interviewed Taki T. who made very interesting point that I don't think I've heard anywhere else.  He said that one of the reasons he's very optimistic about the near term price action for gold and silver is that he said the short interest in GLD (and maybe SLV, too.  I forget) is at what he thinks is an all time low.

What do you think of that as an indicator?

jaba's picture

Goldman - Mario Draghi

I have not yet watched the video attached with Turd's morning report. It is my understanding that Mario Draghi was in charge of Goldman's Europe at the time they helped Greece to meet the criteria to qualify for the Euro. If correct, then he knows the full story. Perhaps that is why he is playing coy?

jaba's picture


Has just gone from $15.48 to $ 15.68 in the last few minutes !!

Turd Ferguson's picture

Uncle Ted follows this closely too


He also thinks this is a bullish indicator. The SLV short position is also very low from a historical perspective.

Auggie's picture

They're Bitchin' about the Scorpion and the Frog

This gave my German a workout, I really need to go back over there for a year or two.  Nevertheless, why should we expect the scorpions to do anything other than what they were designed (and we allow them) to do.  There are at least two parties in every transaction.  The governments and a lot of companies bottom fish when looking for talent, anyone worth a damn is already working for Goldman et al.  Most congressional staffers are either interns or political wonks,  without a clue about financial instruments.  For companies and governments, you can't expect these folks to have the technical savvy to play with top level folks, they're always going to come out on the short end.  Business is really just another level of war, why would anyone expect that the warriors would use anything but the best weapons they can employ?

Take the derivatives out of the market if you want things to be more even, if not better.  Reintroduce forwards and some of the derivatives that make business more liquid and keep the other bullshit out.

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