Author Archives: Yves Smith

Gaius Publius: Goldman Sachs – Masters of the Eurozone

Goldman Sachs wields more power in the Eurozone than you think. And it’s not hard to guess who benefits.

Dan Davies: Greek Banks Were Bigger Beneficiaries of the 2010 Bailout Than French and German Banks

Even though French and German banks benefitted from the 2010 Greek bailout, Greek banks did even more so.

Wolf Richter: Private Equity Scrambles to Buy Primary Care Doctors, “Leverage” Their Patients

The new fad in private equity is to hoover up primary care practices, particularly ones that focus on Medicare, despite the lack of an economic model for increasing profits.

Links 7/22/15

Ugly Greek Bank Resolutions and Depositor Bail-Ins Coming Soon

Why the coming bank bail-ins in Greece are going to be far more costly in economic terms than most observers imagine.

California’s North Coast Wine Industry: How “Sustainable” Is It?

How California’s wine industry contributes to the drought and spends big bucks to tell consumers otherwise.

Links 7/21/15

New York Times DealBook Underplays Misconduct By Regulatory Fixer Promontory, Under Investigation by New York Department of Financial Services

Promontory Group, which plays a major role in helping financial firms tilt the regulatory playing field in their favor, is about to get a long-overdue comeuppance.

Why Debt Sustains Corruption in Greece and Vice Versa

This post makes important observations about how the elite levels of Greece engage in rent-seeking, aka corruption, and can continue those strategies even in the face of economic collapse, to the detriment to the rest of Greek society.

Mirabile Dictu! A Public Pension Investor Derides Private Equity Cult of Secrecy

David Silber, the chief investment officer of Milwaukee’s pension fund, lays waste to the notion that private equity data and legal agreements need to be kept under lock and key.

Gaius Publius: California Drought, the “Bigger Water Crisis” & the Consumer Economy

The California drought is exacerbating severe, structural problems with water use in the West.

Links 7/20/15

Private Equity Carry Fee Scandal Spreads to CalSTRS After NC Points Out Connection

A carry fee reporting scandal that started at CalPERS has spread to CalSTRS as California Treasurer John Chiang says he’ll ask questions.

Bank IT, Grexit, and Systemic Risk

Why bank IT is more of a mess than you possibly imagined, and why that matters.