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18 May, 2010 00:37

Greece to probe US banks as global protests spread

With people around the world rising up and striking over economic concerns, Greece has threatened to investigate the role US investment banks played in its debt crisis.

Economist Mike Norman believes the banks are indeed the root cause for the economic crisis and that the Greeks should be absolved of any responsibility.

We’ve seen a pattern of behavior on the part of investment banks, some of the big names like Goldman, who were actually very active in repackaging Greek debt and actually hiding that debt, and then using credit default swaps to bet against that," said Norman.

The problem in Europe, according to Norman, is directly connected to the euro.

"All the nations who have embraced the euro have given up currency sovereignty, they no longer issues their own currencies and they are under these very strict arbitrary fiscal constraints. They can’t allow their deficits to go above a certain amount and you know, running deficits is normal in times of economic recession or even depression," said Norman.

As protests across the globe begin to evolve from financial complaints into social unrest rooted in the divide between the urban elite and the rural poor, Norman thinks the world should be prepared for revolution.

"We see trillions and trillions of dollars being raised to bailout banks and speculators at the expense of working people who now have to suffer wage cut backs, loss of income, loss of jobs, loss of services and even higher taxes and it’s manifesting in these demonstrations and protests in the streets. I for one am rooting for the Greek protestors,” Norman said.