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Goldman's Greek Budget Deficit Mea Culpa. On The Dot

Tyler Durden's picture


As expected, following earlier protestation by the Greek finance ministry, Erik Nielsen recants (but not entirely). After all, who knows what else the Greek FinMin can disclose about GS swaps and other "financial innovation" exports, should this devolve to a full blown mudslinging competition.

It appears that there has been some misunderstanding of my reference to the 2009 Greek budget numbers in the note below:

I reported the publication of the central government cash deficit of EUR 37.9bn (about 16% of GDP) in 2009, but by using the word "increase" compared with the previously reported deficit (on an accrual basis) of EUR 29.4bn (about 12.2% of GDP) (and the word "revision" in the subject line), I may mistakenly have led some to believe that the previously reported number had been changed to a new and higher number - when indeed I made comparisons between the numbers on the different definitions.  (Cash is cash; while Eurostat cares about the accrual definition.)  I still find it difficult to understand why the cash deficit would have been so much higher than the previously reported deficit on an accrual basis; hopefully, this will be clarified in coming days.

Apologies for any misunderstandings.


Erik Nielsen


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Wed, 02/10/2010 - 12:58 | Link to Comment buzzsaw99
buzzsaw99's picture

Sorry I wrecked your country. ::NOT!!::



Wed, 02/10/2010 - 13:15 | Link to Comment Anonymous
Wed, 02/10/2010 - 14:15 | Link to Comment SWRichmond
SWRichmond's picture

Panzers or banksters; which are more destructive?

Wed, 02/10/2010 - 16:09 | Link to Comment dnarby
dnarby's picture

It's like arguing deflation vs. inflation, it's really a question of which comes first.

Wed, 02/10/2010 - 12:59 | Link to Comment bugs_
bugs_'s picture

He's leaning like a Moody's analyst!

Wed, 02/10/2010 - 13:07 | Link to Comment waterdog
waterdog's picture

Don't be a heart that's true.

Wed, 02/10/2010 - 13:15 | Link to Comment MarketTruth
MarketTruth's picture

Greece: These are not the GDP numbers you're looking for.

Vampire Squid: These are not the GDP numbers we're looking for.

Greece: We can go about his business.

Vampire Squid: You can go about your business.

Greece (to the p-EU): Move along.

Vampire Squid: Move along. Move along.

Wed, 02/10/2010 - 13:19 | Link to Comment Rainman
Rainman's picture

Cash is accounted for as received/paid. Accrual is accounted for as earned/booked payable. The difference can be signifigant in accounting terms.

What has caused the Squid Wizard to be confused ?? 

Wed, 02/10/2010 - 14:41 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

In Greece, we have a name for what Goldman Sachs just did, it's called MALAKIES! Goldman isn't too bright because there is lots of $$$$ to be made in Greece, IF they play their cards right. Can the chief European schlepp at Goldman please contact me so I can set this malaka straight? On second thought, one order of fried squid coming right up!

Wed, 02/10/2010 - 13:41 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

Man, these guys are no better than Robert Citron.

Guess that is why IB will always be a good business - there are always plenty of public officials to sucker.

Wed, 02/10/2010 - 13:47 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

Greece should just hire Joseph Stiglitz and Michael Hudson to advise them. You know, all those guys that Obama didn't place in his economic team.

Wed, 02/10/2010 - 14:31 | Link to Comment Anonymous
Wed, 02/10/2010 - 14:01 | Link to Comment badtimes (not verified)
Wed, 02/10/2010 - 14:40 | Link to Comment Anonymous
Wed, 02/10/2010 - 16:31 | Link to Comment David449420
David449420's picture

I'v argued in the past that banning a racist or homophobic is the wrong way to deal with them.

However for a shill like this, who rips off other peoples comments & passes them off as his own, in order to put a spam here of his web site is a different story.  This guy contributes nothing; he's annoying and should certainly be banned. 

I doubt that there is anybody here who would be willing to defend him.

Yes. Get rid of him.

Wed, 02/10/2010 - 14:26 | Link to Comment Anonymous
Wed, 02/10/2010 - 15:02 | Link to Comment BlackBeard
BlackBeard's picture

lol this shit's playing out like a 007 movie.

Wed, 02/10/2010 - 15:49 | Link to Comment Postal
Postal's picture

The name's Papandreou. George Papandreou.

Wed, 02/10/2010 - 16:41 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

Poor 'Georgaki', inherited a mess that can be traced back to his father, old man Papandreou. I can hear the chants from years ago, "Andrea prohora, Se thelei oli i Hora!" Well, Andreas forged ahead, promising everything to every Greek, including fat pensions. In his late years, the little head took over as the old man married 'Mimi', some flight attendant several years younger than him. When the other party got in power, they repeated the same mistakes, one scandal after another. Greek tragedy.

Thu, 02/11/2010 - 08:34 | Link to Comment fallst
fallst's picture

READ The Fatal Flaw Of These CDOs   portion...


The CDO's   any/all   were fraudulent. From Day One. Goldman


Mon, 04/19/2010 - 10:31 | Link to Comment Tom123456
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