Goldman Sachs: ‘A New Government Required in Greece’


In a note to clients Monday, Goldman Sachs warned that “the platform on which the current Greek government was elected–retaining the euro but with no further adjustment and/or external oversight–is not feasible. Facing this reality, a new political mandate–and thus a new government, a referendum or elections–will be required in Greece.”

Goldman’s analysts also warned that default and capital controls “may be necessary…in order to break the current impasse in negotiations.”

Analysts at Bank of America-Merril Lynch also poured cold water on Tsipras’ attempts to curry favor with other governments by pouring his scorn only on the technocrats, seeing it as out of touch with reality in other Eurozone capitals.

Among the reasons why the Europeans feel they can afford to apply massive pressure on Greece is a sense that, contrary to three years ago, the idea that Greece could set a general pattern for the whole periphery is much less credible,” analysts at BAML wrote Monday. “Ireland and Portugal have successfully exited from the programmes, Italy is much more stable politically and Spain much stronger economically. Greece now is very much in a league of its own.”



    • Yes, Goldman Sachs and American Express , we will really listen to two companies that tried to destroy the US financial system by theft, who’s execs make millions of dollars a year, the real thieves of Baghdad !

    • When banking corporations continually manipulate the economy for their advantage and destroy not only individuals but countries, the penalties should be severe. Have any American CEO’s been sent to prison for their role in the recession a few years ago? Of course not . They own the politicians. Crooked CEO’s should be imprisoned and fined, companies dismantled and the public paid back. These companies are playing a game where they made up the rules, which no one else understands, they are not sharing the rules, and only they can win in the end. And no one can stand up to them because they feel ignorant getting involved in a game they were never taught, or the power of profiting (politicians) by going along is too powerful. How about litigation ? These companies can outspend anyone or any agency a million to one. The disgusting part of this is these companies/CEO ‘s have convinced themselves they are doing nothing wrong because they are following the rules….they created for their personal benefit alone. This may be the most corrupt period in history to date.

  1. WOW. I guess they (Goldman) are forgetting that the government is elected by the people and not appointed by corporations or banks! (At least outside the US)

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