In the labyrinthine world of international finance, a cast of enigmatic figures navigates the complex networks of transitioning economies. These individuals, emerging from obscurity or wielding influential connections, offer financial deals that frequently sound too good to be true—and often are. They operate in a realm where promises of astronomical returns and effortless profits are dangled before the eyes of eager investors, with no need for collateral, track records, or business plans. Assurances of absolute security are liberally dispensed, yet the reality is often far from secure.
The Shoppers are the hustlers of the financial fringe, brokering deals with desperate determination for meager commissions. Their modus operandi is straightforward: they secure expressions of interest from banks or borrowers, often in the form of bank guarantees or promissory notes, then shop these around to Western financial institutions. While they occasionally succeed, netting commissions ranging from 0.25% to 2%, most of their ventures yield nothing but continued search for more pliable and less scrupulous targets.
Con artists in the financial world are masters of deception, orchestrating elaborate schemes to defraud the unwary. They establish sham companies and offices worldwide, luring victims with the promise of immense, effortless returns. Initially allowing their marks to profit, they eventually execute their sting, absconding with the invested funds. The infamous "Nigerian-type Connection" scam is a prime example, where victims are enticed to offer their bank accounts for supposedly high-level officials to launder ill-gotten gains, only to be left with depleted accounts and shattered trust.
In countries undergoing economic transition, a significant portion of the economy operates informally, with estimates ranging from 15% in Slovenia to 50% in Russia and Macedonia, according to some sources (The World Bank). These staggering sums of undeclared cash circulate through financial centers and offshore havens like Cyprus, the Cayman Islands, and Panama. Launderers seek to reinvest their funds to protect against inflation, often reintroducing them into the economies they initially evaded. Their investment strategy lacks discernment; they pour money into a myriad of ventures, indifferent to the actual returns or the quality of their acquisitions, all in pursuit of a veneer of legitimacy.
The most enigmatic group consists of normative businessmen who have discovered ways to secure excessive yields on their capital. Engaging in bond tenders, option strategies, or arbitrage, they can reap up to 300% returns in the volatile markets of transitioning economies. These investors often purchase sovereign bonds at steep discounts, convert them to local currency at face value in collusion with central banks, and quickly sell the local currency to multinationals in need of it. Their goal is to amass more capital by obtaining financial instruments that can be converted to cash in Western banks, perpetuating a cycle of profit-seeking.
The financial landscape in Eastern and South Europe, as well as in countries like Russia, Albania, and Yugoslavia, is marked by a carousel of greed and deception. In this environment, the lines between predator and prey blur as tycoons, politicians, industrialists, and bureaucrats all compete for wealth. However, the consequences of these financial games can be dire, with deceived investors, bankrupt banks, and a trail of economic devastation serving as a sobering reminder of the risks inherent in this shadowy world.
The international finance arena is fraught with risk and manipulation, where the unscrupulous exploit the unwary in a high-stakes game of wealth and power. As transitioning economies grapple with these challenges, the need for vigilance and robust financial regulation becomes ever more apparent.
The Ubiquitous Britannica 2015
Encyclopedia Britannica is now online and as a DVD. The print edition has been discontinued.
Pears Cyclopaedia 2014-5 Edition: Human Knowledge Encapsulated
Pears Cyclopaedia is the last remaining one volume reference work.
Envy as the Foundation of Capitalism
Envy is either destructive, or, as in the case of capitalism, constructive.
