BoneHead Move of Century- Goldman Sachs Invests in Chinese Milk Producer

You hear a lot about China, about how she is growing, the next super power etc. But one thing I cant understand is how all of the people making these claims don’t actually live in China, the mainland at least. They often have offices in Hong Kong, but tell the rest of the world, the mainland is where it is at. For those of us who have lived here we see quite a different picture of the country. Yes she is large and thus there are benefits, but some of the negatives are also large. So Goldman learns a valuable lesson.

Bonehead move of the century Goldman Sachs invests in Chinese Dairy Producer

“HONG KONG: Chinese dairy products maker Taizinai, which counts Goldman Sachs and Morgan Stanley among its investors and Citigroup among its lenders, has collapsed, leaving 3 billion yuan ($440 million) in debt, the South China Morning Post reported on Wednesday.

Morgan Stanley, Goldman and private equity firm Actis Capital had paid $73 million for a 31 percent stake in the company in 2007, with Morgan Stanley providing $18 million, Goldman $15 million and Actis Capital $40 million”