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There are people out there who made the money that Puri lost
Citibank’s rogue relationship manager apparently blew up most of the money he ‘diverted’ on the stock markets. Specifically, he seems to have been trading in Nifty derivatives. I almost wish that he had instead run off with the money and was sunning himself on a beach in the Caribbean, wearing a false beard with the money safely laundered into a Cayman Islands account. But alas, it was not to be. Like traders around the country, he found the lure of ‘effendo’ too strong.
Even though ‘effendo’ sounds like a magical spell from Harry Potter (like Confundo and Diffindo), it is not. It is the popular way of pronouncing F&O, otherwise known as futures and options!
But Effendo seems closely related to a Harry Potter spell called Evanesco which makes things vanish. Effendo can make money vanish as if by magic, as it did for Shivraj Puri and his victims.
Now I know the whole story about how derivatives provide depth and breadth to the stock markets, but for a vast majority of retail investors, they are none of that. Instead, as Warren Buffet pointed out, they are nothing but financial weapons of mass destruction.
According to the Gurgaon police, Puri purloined Rs 300 crore, leveraged it up to Rs 1,200 crore and then managed to shrink that down to Rs 175 crore when, in November, the Nifty refused to behave as he had expected it to.
The only thing unique about his story is the scale and the fact that he had stolen the money he was using. There is no shortage of people who are using their own money and losing most of it. The root cause is the widespread promotion of derivatives as a magical way of making money without risk.
The strange thing is that since short-term investing is effectively a zero-sum game, this is sort of true. There are people out there who made the money that Puri lost.
However, if you think there’s an easy, simple and risk-free way of doing that, you could well be on your way to be becoming your own Shivraj Puri!
Source: valueresearchonline.com
Researchers in South America have studied the viability of using earthworms to process hazardous material containing high concentrations of heavy metal for the bioremediation of old industrial sites, landfill and other potentially hazardous areas.
They provide details of a possible approach in the International Journal of Global Environmental Issues this month, according to Inderscience Publishers. After pollinating insects, worms are probably the gardener's best friend and they have been encouraged to process garden waste and soil for generations.
The common earthworm, Eisenia fetida, could also become a useful tool in the processing and safe management of hazardous solid and liquid wastes with high metal content, according to chemist Lué Merú Marcó Parra of the Universidad Centro Occidental Lisandro Alvarado in Cabudare, Venezuela, and colleagues there and in Argentina.
The team has carried out two feasibility studies on the use of worms in treating waste. The team first used compost produced by worms, vermicompost, as a successful adsorbent substrate for remediation of wastewater contaminated with the metals nickel, chromium, vanadium and lead.
The second used earthworms directly for remediation of arsenic and mercury present in landfill soils and demonstrated an efficiency of 42 to 72% in approximately two weeks for arsenic removal and 7.5 to 30.2% for mercury removal in the same time period.
Earthworms could offer an inexpensive and effective bioremediation alternative to complex and costly industrial cleanup methods, the team suggests.
Given that the accumulation of solid wastes in landfills causes high risk for soils, underground and surface water contamination, so an effective remediation method is increasingly important as toxic metals in a wide range of waste products from obsolete computers to portable electronic devices are discarded in landfill.
Source: India Syndicate