Today’s copy of the UK Independent has an article implicating Goldman in complex financial transactions designed to allow Greece to avoid its debt ceiling.

“The euro membership rules place strict caps on the size of government deficits relative to a national economy, but Goldman Sachs and other banks helped Greece raise cash earlier in the decade in ways that did not appear in the official statistics. With the current recession causing even official budget deficits to balloon all across the continent, fears of further hidden liabilities have been contributing to the crisis of confidence in Greek debt and pulling down the value of the euro.”

Using “cross-currency swaps”, Goldman enabled Greece to push current obligations into the future, creating yet another bubble. For more on Goldman’s bubble machine capability, see The Great Bubble Machine in Rolling Stone and the follow up article Inside the Great Bubble Machine.

How long are we going to allow investment banks to destroy economies, wipe out the savings of millions and put millions of people out of work? If anyone thinks Obama is hostile to Wall Street, think again. Hostile would mean appointing a special prosecutor to go after any financial institution found to be intentional creating bubbles that result in out-size profits for the bank and devastation for the people caught in the bubble. My personal recommendation would be Eliot Spitzer. He did a great job going after Wall Street as Attorney General for Connecticut, and this would be an opportunity for him to gain back some o the credibility his sexcapades cost him.

What do you think?