So, looks like an Indian version of the Democrats similar in the Bankman-Fried debacle ?
Except... the Adani financial empire doesn't appear to be hollow, or imploding under its own weight, or have issues with failures induced due to blatant financial fraud... none of the obvious conversion of frauds being tolerated into fraudulent political contributions as the Democrats did... But, it does appear it is an orchestrated hit by the short sellers at Hindenberg...
Odds are they're not wrong in identifying some measure of over-valuation... from which they can easily enough exploit the sensational in reporting to create a profitable trade... but trusting them on anything beyond that... as obviously self-interested mercenaries conducting a hatchet job and more than willing to stretch the truth to generate a profit... that would be an obvious error. I doubt they've got any political motive, themselves... but, that doesn't mean they're not privateers for hire, gladly willing to work for profit at others expense... not above the occasional hit job...
Find it interesting that they've gone offshore... Wondering whether they're actually well prepared for it.
But, why India... when the massive scale in the level of corruption in China's business dealings seem to make it a much more blatantly obvious hunting ground...
Feb 7: India's stock market crisis isn't just the Adani Group's problem — it's a political issue for Prime Minister Modi too
"The Adani Group itself said in a January 29 report refuting Hindenburg's claims that the short sellers' report was "not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity, and quality of Indian institutions, and the growth story and ambition of India"."
Although I know just as little about Indian law as politics... the national security implications seem obvious enough... so will be interesting if the national security apparatus, or the Indian courts become involved... and force Hindenberg to reveal its sources and the drivers and origins of their interest...
Who put them up to it ?
Feb 8: India PM Narendra Modi blasts ‘lies and abuse’ over ties to Gautam Adani
Feb 9: PM Narendra Modi stood by friend Gautam Adani, says Rahul Gandhi
I don't know enough about Indian politics to judge the probable impacts... My take on it, given limited ability, is that Modi's history suggests his team are probably "used to" and tough enough to fend off this sort of thing... even if not "teflon" like we've seen in the Clinton's egregiously corrupt foundation issues. I don't have a good feel for how troubled by a whiff of corruption Indians are really likely to be... or, if troubled, how much its likely to alter or disrupt team affiliations... to benefit the opposition.
But, "India's Stock Market Crisis" is more interesting, to me... as already generally undervalued relative to global stocks... certainly on an ROI basis in terms of yields...
But, I've not looked at it seriously in probably two years... |
