Chinas investment in Blackstone Essay Example | Topics and Well Written Essays - 1250 words

Chinas investment in Blackstone - Essay Example Governments use this method to secure the domestic market for liquidation. This implies that these assets are of highly liquidated nature and can be altered easily. The oil-producing countries have also come within its grip and are losing or rather investing their wealth in such funds. A company adopted a similar approach in the oil commodity. They then invested their wealth in holding bonds, bank deposits in a similar pattern like central banks. The alarming fact is that no company discloses the application of the funds except for the ones in Norway that provide regular data and statistics. It may be possible that these mysteriously applied investments will be very well lost in the future with no accountability. It happened in one of a developing country wherein a mushroom growth took place in the early eighties. These investment companies conned the unsuspecting public and lured them by promising huge percentage on their investments. The Government kept silent and this approach encouraged the high profit paying companies to get bolder and bolder till the public was convinced to accept them as legitimate companies. The problem further compounded due to no action by the State Bank. The margin of profits increased as the public committed their funds by selling their immovable assets. All cate All categories of people brought in their investment to these companies expecting a higher return on their deposits. Advertisements in each and every newspaper further cemented the authenticity and indisputable legitimacy of these fraudsters. The profits were rolled over and the depositor's received their profits on monthly basis, basking in the realm that a good investment had been made. The bubble burst when the government realized that the funds were been diverted from the scheduled bank and the treasury of the Government was fast losing money to these con artists. No sooner was the action taken and people in droves started to approach the managers of these companies for the return of their deposits that true facts started to stare in their faces. The higher ups evaded the public on rush to their offices and let the lower staff make excuses on their part. The public scenting fraud approached the police and cases were registered with them. Company after company stared to disappear with the savings of the unsuspecting depositors. Huge rallies were taken out to protest against the inaction of the and for the return of their savings, but all to no avail. The Government seemed helpless and the police in cahoots with the company owners further complicated the issue. Only resourceful people with clout were able to draw out some of their savings from these fraudsters. All the rest were left with taking out processions and pleas. Suits were filed in courts and the lengthy, cumbersome legal battle did little for the return of the poor common man. Nevertheless, since these funds are applied abroad so it can be controlled by political pressure and the consequences of these investments may have to be faced by the countries involved. Reference list: Economist Finance & Economics: 'The world's most expensive clubs' www.Economist.com May 24, 2007 Hong Kong Article 2 "Cleaning up" Or Clean Environment - a Global Concern The concept of