When the equity market across the globe was in bull phase in the last year, we saw a lot of market experts appearing in the News Channels and print media giving tips for becoming rich overnight. This phenomenon was not only observed in India, but it was seen elsewhere. Wealth Management, Private Banking, Cross selling by the Banks for investment in Mutual Funds were the buzz word. The glamour and hype of the market was such that any TOM, DICK and HARRY from a third class B-School was selected for Investment Banking by the private investment consultants, brokerages and even so called very smart Banks for the wealth management and private Banking.
Where have gone all the experts? Where are technical experts and Stock Analyst? Who is responsible for erosion of wealth for the investors? Who will take responsibility for failure of Banks particularly in USA and Europe? Why 150 year old institutions are failing? Why there is loss of confidence in the financial system?
I know, nobody will come forward to take the responsibilty. When these institutions were making money, its top managemnt was sharing the fruits through huge salary, incentives and bonuses and a part was given to the shareholders in some cases. Now when the misdeeds of the same people are being exposed, why they are expecting bailouts from the TAXPAYERS Money. YES, it not Government Bailout Package. It is actually Tax Payers hard earned money that is being used for these so called bailouts.
Back here in India also, we are witnessing the same story. IN the bull market, many companies came forward to raise capital through equity route. Despite all regulations an erosion in wealth have been witnessed in most of the cases. The case of Reliance Power IPO is quite glaring example. Here also, people became rich mainly by manipulations in the market and when the market has come to its gravity, they are seeking bail out package. I am referring to the ralty sector. Look how they have made house unaffordable for a common man. They were making a profit margin of more than 100% also in many cases. They have aquired all the plots and made a cartel. But there is no control over them. Who will contro them? Because it belong to political-criminal-bureaucratic nexus. In the bull market, experts were talking about Land Banks and valuations of these companies were made on the basis of their land banks. Lokk, how they have looted the people's hard earned money.
Let us beware in future from the market and investment experts. We should use our age old wisdom and invest logically and looking to safety of the investment.
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