Paul Diaconescu's  Instablog

Paul Diaconescu
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Marketing Manager - Semiconductors Industry
  • Greece is the new Enron, Goldman Sachs is the new Arthur Andersen 0 comments
    Feb 17, 2010 5:05 AM

    Greece is selling bonds in the global market. And they failed to disclose correct/necessary information to buyers (see Bloomberg).

    Can we talk about "accounting fraud"? Can we compare Greece with Enron? Maybe yes if we consider they lied EU about their required indicators. 

    Greece is almost bankrupt. Their only hope is EU will want to stop some future banking losses. Their hope are the huge interests coming from Germany and France. But at some point, people there, will ask their governments to do the same thing US have done in case of TARP funds - to ask back for every penny. And maybe more. To decrease all Greece government salaries (as in AIG case)...

    Looking back, it seems it would have been better for Greece to recognize their problems at the right time. They choose to take a great risk and they've lost.

    Goldman Sachs in probably safe for the moment. But also for their shareholders and for the market, they've lost some trust. How can another government announce in the near future a new deal with Goldman Sachs? How are all their clients seen right now? Probably as fraud suspects.

    It is hard to see that in our days, but Greece and Goldman should ask for apologies to all those affected (in fact, to all the world).

    Disclosure: no open positions

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