If you or I would tell the bank which holds our mortgage we would only pay 90 cents on the dollar I think we would be out of our house pretty darn quick and it would most definitely be because we defaulted on our loan. So what happened in Greece? For a good explanation read this epistle.
But that is only part of the story and here is what happened too and why this means Goldman Sachs stole Europe!
Until Monday investors whether they be countries, banks, hedge funds or private investors who bought bonds issued by countries knew what the rules were and the risks they were taking but the ECB has changed this overnight. They did so by swapping the old Greek debt for new Greek debt in which a clause has changed excluding the European Central bank from the “collective action clause.”
What this means is that the Central bank can retroactively change the rules leaving every other bondholder who have no such power in the dark as to what rules he is investing by. This is of course incredibly dangerous for any investor and what’s more it gives incredible power to the ECB as it is now becoming clear that they can change any contract any time and even retrospectively.
So why does that mean that Goldman Sachs has stolen Europe? Here is why;
If Mario Draghi, a former managing director, now the new head of the ECB can change the rules and retrospectively change contracts than he together with the above marry band of Goldman Sachs boys including the unelected prime ministers of Greece and Italy cream Europe and transfer most of its wealth to the head quarters of Goldman Sachs and its owners