Arbitrageurs

Confidence Games: If Two And Two Add Up To Five, Investors Are In Trouble

News Analysis: An Istanbul, Turkey, Currency Trader, of apparent British origins, is suspected of bilking his clients for more than 130 Million Pounds ($200 Million Dollars). Using various charades, he communicated to his unfortunate investors that he was not able to pay them back  their monies. Now, this apparent  British “Bernie Madoff” style Trader made off with investors’ funds. They should have realized, in  Confidence Games: If two and two add up to five, Investors are in trouble.

We think that in 2015, many more Financial Deviances will be sprouting up like weeds on Wall Street. Accountants, Arbitrageurs, Bankers, Brokers, Fund Operators, (AABBFOs) etc. will be ‘hard-pressed’ in the forthcoming economy, which we foresee. Flimsy investment advice by self-interested “Professionals” will not be able to cope with then-present economic realities. Investors will lose billions of Euros in such investments; this, both due to fraud but also ineptness of judgement.

As always, we suggest: “Trust, But Verify”.

If you want Business and/or Investment Advice, seek out those Seasoned Professionals who put their Clients First, and they, Second. Beware of those “AABBFO” ‘Professionals’ who have the mentalities of Trollops. They will not give you a ‘Treat’ but a ‘Trick’.

Reality.

Reference: http://www.telegraph.co.uk/news/uknews/crime/11307920/Police-let-trader-at-centre-of-130m-con-slip-through-their-fingers.html

☆ Bermuda Casino Gambling; “Smell Tests” Are Not Required [Due To Sea Breeze]?

News Analysis: The Senate of Bermuda voted to allow for three Gaming Establishments on the island. First one would be built, then the next two would follow. During the Senate debate, the question of strengthening the proposed Casino Law to preclude miscreant behavior was suggested by some Senators. The other Senators thought such negative activities were covered already in Bermuda’s Criminal Code. The “Smell Test”  sought, was dispensed with by the majority.

It is interesting for International Businessmen, of which Bermuda has many, to note that the “Free Market Place” is hardly such. Bermuda Is To Have Casino Gambling; “Smell Tests” Are Not Required [Due To Sea Breeze]?

Internationally, there will always be the lurking “Shtarkers” who want to take advantage of the “Freiers” in all economic activities; the London Interbank Offered Rate (LIBOR) Scandal is just one example. Another example is the “Afternoon Gold Fixing Rate” in London.

One can find many examples of Accountants, Arbitrageurs, Bankers, Brokers, Fund Pool Managers, and others looking to ways to “Game the System”; the ‘Morality of the Marketplace” currently being a giant ‘Sinkhole’. “Smell Tests” can be very helpful to the Wise.

One should realize that while the aforementioned activities are actual, the adage to those who want to enter this melee is: “If you are afraid of receiving ‘fast ball pitches’, do not get up to the ‘plate’ to bat.”

Smart International Businessmen always ‘Sleep With One Eye Open”.

Reality.

Reference: http://www.royalgazette.com/article/20141217/NEWS/141219734

China Construction Bank Opens Its European Headquarters in Luxembourg

News Analysis:  A goal of omnipresent use of the Chinese Yuan [Renminbi] , throughout the international banking community, will be facilitated by such bank openings. An increase in Yuan bank deposits in a multitude of countries will assist this process.

Present U.S. Dollar denominated banking will subside over the years as the profligate spending by U.S. Government leaders remains unabated. The current, for the moment, $17,000,000,000,000.00 deficit cannot logically be expected to be paid off in the foreseeable future [especially with the present-day thinking in Washington]. As a result of the financial debacle in America, being maintained by “U.S. Financial Masters of the Universe”,  ‘Print More Money’ has been, is, and will be, their clarion call. Due to the fact that there is ‘little to back the Dollar up’, Arbitrageurs will look to other currencies for strength.

Reference: http://tinyurl.com/mteyzfy