Report & short
The fracture of the US financial system gives me an idea for a new business model.
1) Raise some capital.
2) Use a tiny fraction to hire a few business/finance reporters, and have them find a company riddled with fraudulent business practices. How hard can it be–this stuff is common and not very well hidden. Look at Enron, Halliburton, the Madoff Ponzi scheme.
3) Then short the company’s stock, send the evidence to the appropriate regulatory and oversight agencies, feed the info to the press, and profit!