How and when did Europe's crisis originate? Pat Hardy posted the following quote on Facebook. I thought you might find the charts of Goldman Sachs very interesting since the Incorporation chart clearly demonstrates one of the seven Red Flags I discuss in The Textbook for Financial Astrology Book 2 that investors need to check before putting cash into an equity.
"Let's start back in 2001, when 17 European countries scrapped their national currencies and replaced them with the euro. The new "eurozone" bloc permitted some of its economically weaker members to borrow money more cheaply than they 'd been able to do previously, because they benefited from the higher credit ratings of the region's stronger economies.
As a result, many European countries, including Greece and Ireland, began to take on debt. (In Greece's case, by the way, this effort was aided by Goldman Sachs, which, for a fee, came up with a clever way to allow Greece to disguise the extent of its borrowing). By early 2010, investors began to worry that those two countries, and also Portugal, might not be able to repay their obligations.
Details of the financial meltdowns have varied from country to country. In Greece, the problem was a culture of tax evasion, combined with excessive public spending. (As Michael Lewis of Vanity Fair wrote recently, to get around pay restraints in the calendar year, "the Greek government simply paid employees a 13th and even 14th monthly salary--months that didn't exist.") "