There's a developing story around Sino-Forest Corporation (TSX: TRE).

[randomness]

Muddy Waters Research accuses it of being a "a multi-billion dollar ponzi scheme", "accompanied by substantial theft".

John Hempton observes:

There is a cottage industry in doing forensic analysis of Chinese frauds. I have analysed many and put only a smattering on the blog.

But I have never seen anything this big or this amazing.

Read the report. I am in awe.

Felix Salmon explains:

What’s certain is that in the wake of all this, either Sino-Forest or Muddy Waters is going to lose all credibility: one of them is a multi-million-dollar fraud. Muddy Waters is short Sino-Forest, of course. If Sino-Forest turns out to be a slightly dodgy Chinese forestry company and not a Ponzi scheme, you can be sure that Muddy Waters has been covering its short all day and has banked a huge amount of money by putting out extremely misleading material. On the other hand, if Muddy Waters is right, then Sino-Forest is toast.

Comments

[r-ness.livejournal.com]

I saw that! I was even going to do a post on it, but then it got lost in the pile.

Did I tell you about the entire empty neighborhood in Tianjin I rode an elevated train through? Dozens of buildings towering overhead, two metro stations as yet unopened, all empty. And more construction going on around it.

Amazing. I'd like to check it out again now a little over a year later and see if anyone's living there yet.

[achinhibitor.livejournal.com]

http://www.youtube.com/watch?v=I6IQ_FOCE6I