Pirates, Meet Wall Street
December 1, 2009
The capitalists have taught the pirates a thing or two apparently. This article is pretty amazing at showing how piracy has evolved into a full-fledged industry, replete with an exchange and shareholders. I’m just waiting for the HBS case study.
It is a lucrative business that has drawn financiers from the Somali diaspora and other nations — and now the gangs in Haradheere have set up an exchange to manage their investments.
One wealthy former pirate named Mohammed took Reuters around the small facility and said it had proved to be an important way for the pirates to win support from the local community for their operations, despite the dangers involved.
“Four months ago, during the monsoon rains, we decided to set up this stock exchange. We started with 15 ‘maritime companies’ and now we are hosting 72. Ten of them have so far been successful at hijacking,” Mohammed said.
“The shares are open to all and everybody can take part, whether personally at sea or on land by providing cash, weapons or useful materials … we’ve made piracy a community activity.”
…
Piracy investor Sahra Ibrahim, a 22-year-old divorcee, was lined up with others waiting for her cut of a ransom pay-out after one of the gangs freed a Spanish tuna fishing vessel.
“I am waiting for my share after I contributed a rocket-propelled grenade for the operation,” she said, adding that she got the weapon from her ex-husband in alimony.
“I am really happy and lucky. I have made $75,000 in only 38 days since I joined the ‘company’.”
[via Reuters]
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i would think the government is probably in on it. GDP is about $2k/pp and guessing 40% of that is attributable to oil.
y'all need to see this: http://www.youtube.com/watch?v=7QDv4sYwjO0
yeah, their govt is corrupt and not salvageable. the warlords run the state. its all bad. one would think a few govts coming together with a coup and implementing a (puppet) govt and military would go a long way. but i think we can see how history plays out in a lot of those instances. terrible idea and possibly the only one that could work. definitely a catch 22.
speaking of which, insomnia had me watching cnn at 3 am the other night/morning when some tool bag came on to discuss afghanistan. he said our govt (the karzai regime) was a miserable failure and should be taken out of power. and that the way to solve our afghan situation was to get in bed with the warlords that fought the soviets and give them incentive to carry out our wishes (im paraphrasing, but he actually detailed the warlords from soviet uprising partnership idea cause he thought it was brilliant). does this guy not realize we implemented bin ladens uprising against the soviets? he literally said to solve our problems in afghanistan we put bin laden back in power. it was the most surreal thing id ever heard.
hahahahahhahaha. priceless. just wait til some financier takes them down from the inside in a ponzi scheme. somalia is damn near a lost cause. just another reason for countries to refuse paying ransoms (and, btw, wtf was spain thinking when they decided to pay them???).
id like to think that a massive govt action could take out a large % of the pirates, but the country at a whole is in such bad shape it wouldnt help. they need a real govt and some serious international help.