(EDITOR'S NOTE: China buys a $3 billion piece of the Blackstone IPO (Initial Public Offering) and Goldman Sachs invents a so-called "Private Exchange" scam in order to avoid SEC regulations. So who will be the newest "bag-holders", i.e. those who end up "holding the bag"?
The announcement that China is going to take a 9.9% holding in the Blackstone IPO is unprecedented.
Meanwhile Goldman Sachs has taken private equity to new depths with a so-called "private stock exchange" -- in an effort to evade SEC regulations.
The deal is that for a minimum $100 million, institutional investors only, Goldman Sachs will be trading so-called "unregistered equity" which is, in essence, taking stock fraud to the moon – and beyond. So what does this portend for so-called "investors"?)
Very simply put, in the Beijing-Blackstone deal, the Chinese government would take a stake in what will be a de facto Blackstone Group IPO, which, in itself, is the issuance of shares, which are effectively worthless.