Saale...sab chor hein

Saale..sab chor hein!

How much does an Investment bank make in a transaction? Let's see..

Investment bank arranges for currency swaps worth $4bn and it in turn gets around 2% as commission alone from the whole transaction. And of course the insights would allow the bank to invest/not invest in those currency swaps allowing for huge advantage over others.

So a group of around 15-20 investment bankers from Goldmann sachs involved in the currency swap transaction garnered around $80 million in just commission.

The transaction is made to make believe the world that Greece is in good shape.
The country tried to fox the whole world saying that its deficit is 3% where as the actual hovers around 12%.

But what is the eventual fall out of this transaction
a) When the true picture came out, hundreds and thousands are left without pension, no medicare, no wages due to the austerity plan
b) The country is on the verge of bankruptcy
c) The same investment bank suggests not to invest in that country
d) The ripples deepen the recession across European Union leading to the decline in Euro and job less situation across many countries.
e) The once prosperous nations are reeling under severe un-employment rates, high inflation and reduced govt. spending, increased govt. rates leading to dark ages.

Who is the only winner from this transaction?
GOldman Sachs, of course!

Money cannot make money...Why are these sounds not heard by investment banks and others involved in similar transactions?

kitnaa chori karenge...Because of a small group of investment bankers, the whole Greece and Europe is suffering...is it worth it?

Kitnaa khaaoge...How are you worse than the politicians..who are here to just make money and nothing else? Why isn't the eventual benefit of the people looked at?

Saale..sab chor hein!

Comments

Kiran said…
"Sab" is more important in the title of this blog. What we know today as "Market" is itself a platform which was established as a means to make the comman man participate in "Wealth Creation". Instead it has ended up being a replacement of many not-so-sophesticated forms of gambling like horse racing. Today if a common man wishes to voluentarily particpate in intra-day trade, which has no economic sanity as per me (How many times do you think in a day, new information is available to affect a share price?)...No one should blame the FIIs suddenly pulling off money at some point...So yes...Sale, SAB chor hain....Just a disclosure...I also have been involved in intra-day trade inspite of believing the above
2:54 PM
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