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Archive for September, 2015

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Posted On 24  Sep  2015  

Volkswagen’s crime has wider implication

Volkswagen (Ticker: VOW3) has done enormous damage to German Inc. Cheating on agreed regulatory standards on emission is a disgrace for German society. This scandal is the same category as Enron, Worldcom, Goldman Sachs front running their clients, Libor fixing by banks in general, BP’s oil spill, sub prime lending and High Frequency Trading. We don’t know if other auto manufacturers will also be found to be rigging emissions. Do BMW or Daimler have the technology? One imagines that it may not have been difficult for VW to figure out what others have and then to copy or license the same. Reducing green house gas emissions is a global responsibility. There is no hope for humanity if big corporations engage in dumping toxins into our environment. One starts to suspect that chemical companies are also leaking toxic materials without our knowing. There have been controversies about the prices paid for

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Posted On 11  Sep  2015  

Brazil – Opportunity in incompetence

September 11, 2015 Dilma Rousseff, Brazil’s president is a lame duck. Suspected of corruption in the mega Petrobras scandal, she is a President who has been hiding from governance, possibly in fear that if she was seen doing something, people might suspect that she will steal again or allows her ministers to take bribes. Her government’s lack of intelligent response to the economic crisis has left Brazil exposed on many fronts. Weak economics begets a weaker government. Let us summarize what has transpired and then try to make sense of where one goes from here. Brazlian Real (BRL) Over the last 5 years the BRL has fallen from 0.64 to the US dollar to 0.26 as of today.  True that at its peak in July 2011 BRL was probably somewhat over valued when WTI was at over USD 100 a barrel.  With a lot of energy devoted to syphoning out