The worrying global capital pitfalls orchestrated by Capital Mafia

Spoke to a friend this morning about the worrying trend that majority of the entire world's capital could have been in control by very few venture capitals and private equities. My friend termed them as "Capital Mafia" after I explained that these VC and PE players might have used an opaque valuation system co-designed by them and several prominent investment bankers in assigning skyrocketing value to the unicorns they have invested in. They then use these unicorns to continuously raise fund and siphon off the capital from the market. By concentrating their wealth on this paper value that is independent from cash and credit, they are able to stay intact from the impact of monetary policy and fiscal policy enforced by the governments and central banks around the world. Yet, as they are not public listed companies, they are exempted from the scrutiny of general public based on the globally recognized economic and financial metrics. They are capable to make and break any big corporations by using capital deployment and redeployment.

P/S: For the concept of concentrating wealth on Venture Capitals and Startups that are far away from cash and credit, please refer to Peter Thiel's explanation in this podcast between minute 53:11 and minute 56:11: http://podtail.com/podcast/the-james-altucher-show/ep-43-peter-thiel-what-the-future-looks-like/