Top Chinese banks are involved in Ponzi financing of investment deals, offering interest rates over 7% to depositors, to finance real estate projects gone bust and other projects whose assets are not even disclosed.
Banks label these schemes "Wealth Management Products" (WMPs) but any individuls foolish enough to invest in them are going to lose money, perhaps all of it.
NEW DELHI: Motherson Sumi Systems (MSSL), India's largest auto parts maker, is doing a due diligence on three auto component makers in Europe for possible acquisitions, its chairman Vivek Chand Sehgal said. Move, according to Shegal, is aimed at achieving a threefold increase in revenues in five years. The company has set a revenue target of $18 billion by 2020. It's revenue currentlyis $5.5 billion .
NEW YORK (Reuters) - AT&T Inc will buy Leap Wireless International Inc for $1.19 billion, paying almost double the current value of the prepaid mobile service provider as major U.S. carriers scramble to acquire valuable wireless spectrum.
Late last month we outlined an IBTimes report which showed that Goldman Sachs paid nearly a quarter of a million dollars to Bill Clinton for a speech before lobbying the State Department (then run by Hillary Clinton) on legislation tied to the Export-Import Bank which would eventually approved a loan to a Chinese company that subsequently placed a $75 million purchase order with a Goldman-owned aircraft manufacturer.
BRUSSELS: Greece and its international creditors are making progress towards finalising a third bailout accord designed to keep Athens in the eurozone in return for yet more tough economic reforms. Officials believe an agreement on terms for the deal can be reached soon, possibly on Tuesday, and end a long-running crisis which has raised serious concerns about the future of the single currency. - What is being discussed in Athens?
ATHENS (Reuters) - Greece would need an additional 13-15 billion euros to finance a two-year extension to meet its budget targets but is confident of bridging that gap without burdening European taxpayers, Finance Minister Yannis Stournaras told Reuters on Tuesday. He also confirmed that the country's fiscal gap to hit its 2013 and 2014 targets remained at 13.5 billion euros. Athens has been discussing fiscal measures worth that amount with its European Union and International Monetary Fund lenders. ...
The EU has accused Spain of overstating its 2011 budget deficit thus making it easier to make progress in 2012. Furthermore the EU is upset about delays in austerity measures ahead of regional elections next month.
The Prudent Investor submits:
Is China getting ready to tighten credit? In a most pragmatic move 3 rather hawkish economists have been added to the monetary policy committee of the People's Bank of China (PBOC), according to a report on chinadaily on Wednesday.