Greek Deals Hidden From EU

Those who are long EUR better check their positions. Greek spreads over German bonds have widened back to crisis levels, and could undermine any stabilization in the EUR-USD exchange rate. Until recently, it appeared that the Greek budget issues had been swept under the rug, but we now see the issues are creeping back to the forefront. According to Bloomberg:

Four months after the 110 billion- euro ($140 billion) bailout for Greece, the nation still hasn’t disclosed the full details of secret financial transactions it used to conceal debt.

“We have not seen the real documents,” Walter Radermacher, head of the European Union’s statistics agency Eurostat, said in a Sept. 2 interview in his Luxembourg office. Eurostat first requested the contracts in February.

More from Bloomberg

Also check out Michael Lewis’ new article in Vanity Fair:

Beware of Greeks Bearing Bonds
As Wall Street hangs on the question “Will Greece default?,” the author heads for riot-stricken Athens, and for the mysterious Vatopaidi monastery, which brought down the last government, laying bare the country’s economic insanity. But beyond a $1.2 trillion debt (roughly a quarter-million dollars for each working adult), there is a more frightening deficit. After systematically looting their own treasury, in a breathtaking binge of tax evasion, bribery, and creative accounting spurred on by Goldman Sachs, Greeks are sure of one thing: they can’t trust their fellow Greeks.

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