Sporadic links

Due to the nice weather, I cannot guarantee weekly links at the moment…..

The interesting case of EBIX, a US software company with potential fraud allegations

One of the early Chinese reverse merger frauds, China Medical Express is now sued by the SEC

And an interesting case of a beef/cow Ponzi scheme in Japan

Paul Krugman gets it wrong on Apple. Noone is forced to buy Iphones at high prices.

Why Bernanke is the wizard of Oz (Damodaran)

Chinese troubles

EDIT: Don’t miss this speech of value legend Michael Price


  • The government spending is what John Hussman also has pointed out: It won’t be able to maintain that high spending, and when it will be cut, corporate profits should decline. So even if tax loopholes and the low interest rates remain for a long time, the high profit margins won’t be persistent.

  • Regarding Apple and Krugman: You could always argue like that – you are never forced to buy ANY product from any monopolist, so monopolies would never be a problem. (You probably meant that Apple does not have a real monopoly in cell phones, like Microsoft has/had in operating systems, because there are several other suppliers with good smartphones, which you can buy without any disadvantage, to which I would agree). Nevertheless, Krugman is right that the profits in the US are at an extraordinary high level, more than ever before. Supposedly, a efficient market with functioning competition would bring these profits down, at least by half.

    • #winter,

      yes, I meant that Apple is not comparable with Standard Oil or Cable companies. People buy the iphone / Ipda because tehy want to buy it. Clearly, Apple’s profits are also a result of not paying taxes.

      Overall, the high percentage of profits of companies is in my opnion a function of: Tax loopholes, low interest rates, Emerging market profits and high government spending. But maybe this would be worth a seperate post….

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.