Letter to Michael Lewis regarding CDO Manager, Harding Advisors, Wing Chau’s defamation suit.

NOTE:  I wrote this with the intention of sending it to author Michael Lewis; however due to abnormal difficulty in locating his contact information I decided to post it here with the hope one way or another he comes across it.

Dear Michael Lewis,

You're book The Big Short was not only excellent, it has been instrumental in the side project I'm currently working on.

I saw that you are being sued by Wing Chau and this bothered me.

Page 141 of the hardcover Big Short; when Eisman is shocked to find out Wing Chau had sold his portfolio of CDO’s and wasn’t carrying anything.   A lot of questions remain, where the housing paper losses went. It is my opinion based off my research; those losses were fraudulently disguised and merged onto the balance sheet of certain companies; for example WCI Communities.

When WCI Communities went bust it made sense, "They were in housing and the bubble popped". End of story. Because the banks leveraged WCI to the gills, equity stood zero chance after it became insolvent and the common holders basically swallowed and walked away with their head down. The insiders had little to worry about as far as someone crying foul and demanding to see the books.  To the best of my knowledge I am the first person to suggest WCI had the other side of certain hedge funds short housing bets.  (I’ll present this WCI case down the road, now I’m totally consumed with what these guys are currently doing—shorting the Asian property market).

I believe the Macro guys are now shorting China, Hong Kong, and Australian property market. What lead me to this opinion was a continuation of my research into Macau being den of thieves.  That report is posted here.

I haven't got around to publishing my most recent findings (How they're shorting it: how they disguise it, the players, which entities they're using, how the capital flows work), but if you're interesting in speaking I'd be happy to talk with you.  Some of this stuff is just incredible…how many of the recent Chinese scams I can connect together and even tie back to housing CDO and Trust!

Back to Wing Chau. I find it hard to believe a guy who moved 15 billion worth of toxic paper, had no idea where it went. Thus, if this paper was fraudulently merged onto certain companies’ balance sheets, as I suspect it was, then is he not himself committing fraud?  I raise the idea briefly on my here however expect a more detailed entry in the near future which I suspect could really stir things up.

The public would love to see heads for the mess in 07; perhaps you can kill two birds with one stone by giving this guy a criminal case to worry about.

I greatly appreciate you're work and would be happy to speak further with you, let me know and we can set up a time to speak.

Donny

ihs.research@mail.ru