As we all know it was GS that invented and structured this appoach. The objective clearly is to get Germany deep, deep in debt via obscure non transparent derivat mechanisms ready to blow.
Did the Europeans Just Invent a New Government Backed Derivative?
When a special purpose vehicle, which was intended to increase the stability of sovereign debt, begins to receive criticism because of the complexity of its structure, you can be forgiven for wondering if it does more harm than good.
http://www.cnbc.com/id/41846746/Did_the_Europeans_Just_Invent_a_New_Government_Backed_Derivative
LONDON, Aug 8 (IFR) - With talk of the size of the European Financial Stability Facility's lending capacity being increased from its current but yet to be ratified ?440bn - numbers such as ?1trn, ?2trn, even ?4trn, have been bandied around - one thing is clear: there is likely to be a lot more paper in the market than was envisaged when the limit was ?250bn.
Germany's contribution to the EFSF rises to 29% from 27% under the new proposals, while France's grows to 22% from 20.5%. These swell to 43% and 32% if Italy and Spain withdraw.
http://in.reuters.com/article/2011/08/08/efsf-bonds-idINL6E7J80KF20110808
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