{"id":19135,"date":"2016-03-24T18:48:31","date_gmt":"2016-03-24T23:48:31","guid":{"rendered":"http:\/\/olduvai.ca\/?p=19135"},"modified":"2016-03-24T18:49:07","modified_gmt":"2016-03-24T23:49:07","slug":"a-scam-called-valeant-why-the-casino-is-going-to-blow","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=19135","title":{"rendered":"A Scam Called Valeant\u2014\u2014Why The Casino Is Going To Blow"},"content":{"rendered":"
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A Scam Called Valeant\u2014\u2014Why The Casino Is Going To Blow<\/a><\/h3>\n<\/header>\n
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If you\u00a0need evidence that Wall Street is a financial time bomb waiting for ignition look no further than the recent meltdown of\u00a0Valeant Pharmaceuticals (VRX). In round terms, its market cap of $90 billion on August 5th has suddenly\u00a0become the embodiment of that proverbial sucking sound to the south, having plunged to less than\u00a0$12\u00a0billion by Wednesday\u2019s close.<\/div>\n
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That\u2019s nearly a\u00a090%<\/strong><\/em>\u00a0haircut and VRX was no microcap penny stock. It was a giant inhabitant of\u00a0a hedge fund hotel.<\/p>\n

Needless to say, the cliff-diving pattern in the graph below provides evidence that the ticking bombs\u00a0in the casino are of the\u00a0neutron<\/em>\u00a0variety. 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.<\/p>\n

Condign justice, some might say, for the likes of\u00a0rank gamblers like William Ackman (Pershing Square) and Jeffrey Ubben (ValueAct Holdings) who lost $700 million each that day. The fact that they have successfully\u00a0promoted themselves for so long\u00a0as masters of the universe, however, is the real moral of the story.<\/p>\n

The financial markets and media have been so corrupted by central bank bubble finance that\u00a0they did not even recognize that Valeant was a monumental scam and that Ackman and Ubben\u00a0are snake oil salesman in $5,000 suits.\u00a0 Presently it will become\u00a0clear that the hedge fund hotels are\u00a0heavily occupied by many\u00a0more of the same.
\n\"VRX<\/a><\/p>\n

Alas, Valeant wasn\u2019t\u00a0caught\u00a0selling poisoned pills\u00a0or torturing\u00a0kittens during the last\u00a0seven months. What it was doing for the past seven years\u2014\u2014aggressively\u00a0pursuing every one of the financial engineering strategies that are worshipped and rewarded in the Wall Street\u00a0casino\u2014\u2014finally came a cropper.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A Scam Called Valeant\u2014\u2014Why The Casino Is Going To Blow If you\u00a0need evidence that Wall Street is a financial time bomb waiting for ignition look no further than the recent meltdown of\u00a0Valeant Pharmaceuticals (VRX). In round terms, its market cap of $90 billion on August 5th has suddenly\u00a0become the embodiment of that proverbial sucking sound […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[6122,124,5979,2120,1849,1138,13094,860],"class_list":["post-19135","post","type-post","status-publish","format-standard","hentry","category-economics","tag-casino","tag-central-banks","tag-contracorner","tag-david-stockman","tag-financial-markets","tag-stock-market","tag-valeant","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19135"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19135\/revisions"}],"predecessor-version":[{"id":19137,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19135\/revisions\/19137"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}