Monday, July 23, 2012

China Property CDO's...Merged On You're Balance Sheet...

Despite my efforts of sending my report to a large number of fund managers in Melco, global regulators, company auditors, reporters, and a good number of the Funds in the ISDA club, the stock seems little interested.  

Two things then occurred to me: 1) I'm not telling funds like Tudor anything they don't already know.  2)  This things not going to collapse until its done being loaded with shit, marketed up, and the equity interests are distributed to certain Bafoons managing Sovereign Wealth funds and Pensions, or into another Corporate interest for another round of marking up and M&A.

I've drawn out a diagram of the movement of entities and their respective "Assets & Liabilities" to Melco via conduits like eSun and eSun via Lai Sun Development.  The Middlemen/Managers like Oaktree and SilverPoint, Financiers like Deutsche Bank and Morgan Stanley in my opinion are engaged in blatant fraud.

Now something I hadn't thought about before today is whether the purchasers of the equity tranche of a CDO or CDO Manager/Temporary Warehouser (I believe like eSun), are themselves committing securities fraud through its participation in the scheme via their equity ownership.  For this not to be the case, the equity purchasers would have to be ignorant to what's really going on inside the company and that at some point certain interests are going to be fraudulently marketed to investors or misrepresented as they are merged into a host corporation.

Is this assumption incorrect?


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