Greece Debt Crisis and Wall Street Role Behind it

Abstract

In order to enter eurozone, Greece falsified its budgetary report and hide true extent of its debt. US investment bank Goldman Sachs provided help in masking debt through use of cross-currency swaps, and later the same bank pushed Greece further toward default. When true extent of Greece debt was revealed, it sparked a sovereign debt crisis that threatens very foundations of eurozone because of possible spread to other member states. It is a matter of debate whether USA actually benefits from Euro crisis, as main competitor of US dollar is weakened in the middle of ongoing US debt crisis. In any case, Euro project was created with several inherent weaknesses which were shown in its first crisis.