Goldman Buys $2.8B Worth of Venezuelan Bonds, and an Uproar Begins
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Re: Goldman Buys $2.8B Worth of Venezuelan Bonds, and an Uproar Begins
#2It looks like Goldman Sachs is betting that Venezuela will sort it self out by 2022, and getting a good discount. I'm not sure how that is “making a quick buck off the suffering of the Venezuelan people”, or how the people would benefit if nobody buys the bonds.
Re: Goldman Buys $2.8B Worth of Venezuelan Bonds, and an Uproar Begins
#3It looks like Goldman Sachs is betting that Venezuela will sort it self out by 2022, and getting a good discount. I'm not sure how that is “making a quick buck off the suffering of the Venezuelan people”, or how the people would benefit if nobody buys the bonds.
As happened in Greece, such purchases result in pressure applied to the country to pay off its debts, rather than help its people. It's good in the short term, but in the long term, government debt ends up as a massive transfer of capital to the lenders.
Re: Goldman Buys $2.8B Worth of Venezuelan Bonds, and an Uproar Begins
#4It looks like Goldman Sachs is betting that Venezuela will sort it self out by 2022, and getting a good discount. I'm not sure how that is “making a quick buck off the suffering of the Venezuelan people”, or how the people would benefit if nobody buys the bonds.
As happened in Greece, such purchases result in pressure applied to the country to pay off its debts, rather than help its people. It's good in the short term, but in the long term, government debt ends up as a massive transfer of capital to the lenders.
Yeah. But don't bet on the current government doing that. Quite the contrary
Or even the next
This is pure speculation
Re: Goldman Buys $2.8B Worth of Venezuelan Bonds, and an Uproar Begins
#5Earlier quoted context omitted.
As happened in Greece, such purchases result in pressure applied to the country to pay off its debts, rather than help its people. It's good in the short term, but in the long term, government debt ends up as a massive transfer of capital to the lenders.
Yeah. But don't bet on the current government doing that. Quite the contrary Or even the next This is pure speculation
Banks control western politicians who will put who ever is in power under pressure to pay of the debt. I used to think people that talk like that are same as the ones that wear tin foil hats. But the last 6-7 years has made me realise that they are not completely bat shit crazy. And the world of power is power is most corrupted and the least in the news.
Re: Goldman Buys $2.8B Worth of Venezuelan Bonds, and an Uproar Begins
#6Earlier quoted context omitted.
Yeah. But don't bet on the current government doing that. Quite the contrary Or even the next This is pure speculation
Banks control western politicians who will put who ever is in power under pressure to pay of the debt. I used to think people that talk like that are same as the ones that wear tin foil hats. But the last 6-7 years has made me realise that they are not completely bat shit crazy. And the world of power is power is most corrupted and the least in the news.
"And the Weak Suffer What They Must?" by Yanis Varoufakis (former Greek finance minster) has an interesting view on the mess that Greece (and indeed Europe and the rest of the world) is in. I don't think it's without flaws but it is certainly interesting - particularly his view of EU/ECB bureaucrats:
"a clueless, inefficient bureaucracy... working tirelessly for politicians with an infinite capacity to recite unenforceable rules"
Re: Goldman Buys $2.8B Worth of Venezuelan Bonds, and an Uproar Begins
#7It looks like Goldman Sachs is betting that Venezuela will sort it self out by 2022, and getting a good discount. I'm not sure how that is “making a quick buck off the suffering of the Venezuelan people”, or how the people would benefit if nobody buys the bonds.
As happened in Greece, such purchases result in pressure applied to the country to pay off its debts, rather than help its people. It's good in the short term, but in the long term, government debt ends up as a massive transfer of capital to the lenders.
>As happened in Greece
Greece had the largest default in history[0], virtually all private debt holders were forced to take a ~70% haircut.
[0]: https://en.wikipedia.org/wiki/Private_sector_involvement
Re: Goldman Buys $2.8B Worth of Venezuelan Bonds, and an Uproar Begins
#8This is interesting, and I've read the entire thing (in fact, I have much more to say about this then just "interesting"). But how is this relevant to HN?
Re: Goldman Buys $2.8B Worth of Venezuelan Bonds, and an Uproar Begins
#9Earlier quoted context omitted.
As happened in Greece, such purchases result in pressure applied to the country to pay off its debts, rather than help its people. It's good in the short term, but in the long term, government debt ends up as a massive transfer of capital to the lenders.
>As happened in Greece Greece had the largest default in history[0], virtually all private debt holders were forced to take a ~70% haircut. [0]: https://en.wikipedia.org/wiki/Private_sector_involvement
That 'haircut' is based on interest assumptions not actual costs. The actual haircut was only 53.5% of the face value so if you bought it from someone else at a higher discount you made significant profit. Assuming you sold it or there will be no second default.
Re: Goldman Buys $2.8B Worth of Venezuelan Bonds, and an Uproar Begins
#10Goldman is not betting Venezuela will sort itself out. Goldman is betting it can extort the future government of Venezuela out of money it does not have if it wants funding from IMF or the World Bank. The justification they are giving is that they bought it off a secondary market...