A Scam Called Valeant——Why The Casino Is Going To Blow
That’s nearly a 90% haircut and VRX was no microcap penny stock. It was a giant inhabitant of a hedge fund hotel.
Needless to say, the cliff-diving pattern in the graph below provides evidence that the ticking bombs in the casino are of the neutron variety. In this case, the hotel may be still standing but the inhabitants have been ionized. On a single day last week, hedge funds lost $5.3 billion in value.
Condign justice, some might say, for the likes of rank gamblers like William Ackman (Pershing Square) and Jeffrey Ubben (ValueAct Holdings) who lost $700 million each that day. The fact that they have successfully promoted themselves for so long as masters of the universe, however, is the real moral of the story.
The financial markets and media have been so corrupted by central bank bubble finance that they did not even recognize that Valeant was a monumental scam and that Ackman and Ubben are snake oil salesman in $5,000 suits. Presently it will become clear that the hedge fund hotels are heavily occupied by many more of the same.
Alas, Valeant wasn’t caught selling poisoned pills or torturing kittens during the last seven months. What it was doing for the past seven years——aggressively pursuing every one of the financial engineering strategies that are worshipped and rewarded in the Wall Street casino——finally came a cropper.
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