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" You made money in derivatives by trying to blow up your clients " - Frank Partnoy, A Wall Street whistle blower.
FIASCO - By Frank Partnoy
Interesting reading.
The "emerging markets" fiesta: A stinking pile of third world debt, that no one wanted to buy. What to do.?. The financial MBA wizz kids had a CON solution.
Make a nice euphemism. "Emerging Markets"
It was not clear what Emerging markets meant or how these markets may emerge. But it sounded awfully good. And it helped cloud the fact that the Emerging bond an investor bought was actually a Peruvian Loan, that hadn't paid any interest since 1800's. !..But heck, it worked man. !
This was the financial wizardry of the low down type, cooked up by brilliant sophisticated MBAs to cheat investors. And get paid millions in bonus for doing that, with status and prestige to boot.
The Mexican bank Fiesta, another crooked game of black heart, where these same brilliant MBAs of banks paid millions of dollars to ratings agencies to pass off highly risky products as Triple AAA's rated US securities, allied to routine use of offshore jurisdictions to evade US regulators. The resulting financial alchemy completed mission impossible - " An investment grate Mexican Bond denominated in US dollars and sold to unwary but trusting investors and US pension funds alike.
Shame on these Credit Rating Agencies. !
Combining a junk bond with a AAA rating was like baking a cake and then adding icing. The cake was crap. But the icing was real chocolate.
The icing persuaded the rating agency to call a crap cake a chocolate cake.
What are the lessons to draw from all this muck churned out by these so called brilliant finance wizz kid MBAs.?. Even they become CON MEN soon enough..and earn the right to be paid astronomical wages and bonus.!
" Our culture has become so infused with the gambling instinct that we give investors only that bill of rights normally given to a slot machine player.
1. The right to pull the handle
2. The right to pick a different machine
3. The right to leave the casino.
BUT NOT THE RIGHT TO A FAIR GAME.
FIASCO - By Frank Partnoy
Interesting reading.
The "emerging markets" fiesta: A stinking pile of third world debt, that no one wanted to buy. What to do.?. The financial MBA wizz kids had a CON solution.
Make a nice euphemism. "Emerging Markets"
It was not clear what Emerging markets meant or how these markets may emerge. But it sounded awfully good. And it helped cloud the fact that the Emerging bond an investor bought was actually a Peruvian Loan, that hadn't paid any interest since 1800's. !..But heck, it worked man. !
This was the financial wizardry of the low down type, cooked up by brilliant sophisticated MBAs to cheat investors. And get paid millions in bonus for doing that, with status and prestige to boot.
The Mexican bank Fiesta, another crooked game of black heart, where these same brilliant MBAs of banks paid millions of dollars to ratings agencies to pass off highly risky products as Triple AAA's rated US securities, allied to routine use of offshore jurisdictions to evade US regulators. The resulting financial alchemy completed mission impossible - " An investment grate Mexican Bond denominated in US dollars and sold to unwary but trusting investors and US pension funds alike.
Shame on these Credit Rating Agencies. !
Combining a junk bond with a AAA rating was like baking a cake and then adding icing. The cake was crap. But the icing was real chocolate.
The icing persuaded the rating agency to call a crap cake a chocolate cake.
What are the lessons to draw from all this muck churned out by these so called brilliant finance wizz kid MBAs.?. Even they become CON MEN soon enough..and earn the right to be paid astronomical wages and bonus.!
" Our culture has become so infused with the gambling instinct that we give investors only that bill of rights normally given to a slot machine player.
1. The right to pull the handle
2. The right to pick a different machine
3. The right to leave the casino.
BUT NOT THE RIGHT TO A FAIR GAME.
