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China hustl7/30/2023 ![]() So, hundreds of billions of dollars of American investment in the Chinese economy became a scam based on trust and, not surprisingly, on abuse of that trust.īut wait, there’s more. And there was basically no way for regulators to access hard numbers via the Chinese government. It is, incredibly, not against the law in China to cheat foreigners outside the country. Trouble was, there was virtually no oversight on those Chinese companies. ![]() The tactic was called a “reverse merger.” R&S, and an unruly California company called Roth Capital Partners, realized that a Chinese company could merge with an American shell company that was still listed on stock exchanges. ![]() So a couple of companies simultaneously stumbled on a ten-figure loophole. But foreigners weren’t allowed to invest directly in the Chinese market. Everybody was excited about the economic activity nearly two billion people could generate. Seems the ‘08 calamity left surviving financial firms looking for a way to get back on their feet. And it should make you just as angry, if not more, at the fox-in-the-henhouse scenario of the U.S. In fact, The China Hustle is practically a seamless sequel to The Big Short. If anything, it contains even more drama – including a Chinese whistle blower who ended up in jail for two years without charges. ![]() Rothstein, whose film includes Alex Gibney and Mark Cuban as executive producers, tells a story that begs to be made into a feature film a la The Big Short. ![]()
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