Homer d'oh, 50MM into Yongye, probably not to smart money, and investors are now 2nd in line

So Yongye went up on news that morgan stanley private equity closed its deal for 50MM of prefered shares in yongye, and making current investors 2nd inline tobe paid back in liquidation. And put up the fact that Morgan stanley has all the protections in case of fraud, which would make them seem pretty smart. and homer claims that his company has done extensive due dilgence on yongye, and gave them their thumbups and millions of dollars. Investors should be relieaved.  When will shareholders learn, from the chinese media express or sinoforest case, do not leave your investing thesis up to others.  In the case of ccme, investors bought in because hank greenberg was involved, why would he invest in a fraud or sinoforest why would paulson the man who made the big short on subprime invest in a obvious fraud?  The reason is that what many investors here fail to realize is that investing and research in china relies on what the chinese called "Guanxi", http://bit.ly/mfbnWB  personal relationships and semi honour system.  And you put in the simple known fraud techniques http://bit.ly/iWVgr2 you have a receipe for disaster.  Business in china relies on guanxi, and Morgan stanley private equity is no exception. You can't get business done with guanxi in china.  My simple question is why would Yongye need 50MM, if they were producing so much cash and has so much ample cash in the bank 44.5MM. Does that make sense.  a future lesson for homer is that , 50MM isn't much to a large pe firm like morgan stanley, but take it from paulson and greenberg, the reputational damage is large.  And thinking you have the legal ability to retrieave any of your money back from china courts is more a pipe dream.  take it from greenberg. Is Yongye any safer to investors now Ms in involve, I don't think so, and with Ms involve bringing in the spotlight onto Yongye, its even more riskier as more eyes are onto the books of yongye.