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Politically Incorrect: Satyam Scam

Politically Incorrect

Satyam Computers stock fell over 77% after it CEO admitted to have botched its account books for over a year, and pulled off a Rs. 40Bn corporate fraud.

Want to scam a whole bunch of investors? Here is how its done.

Satyam Computer Services Limited Chart

Bad: You bought their shares.
Worse: You bought their accounting software!

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Comments

LorenzoCelsi 9. January 2009, 07:35

Unfortunately I've learned there is NO WAY to gain money without a fraud or another. I mean, behind any successful business there is one or more frauds. The whole new economy for example. Or ANY of those tactics the common companies use to deal with clients. See MS on top but it is not different on a smaller scale.

Shaunak 9. January 2009, 09:00

Shocking to learn.... :yikes:

LorenzoCelsi 9. January 2009, 09:07

It comes from a basic principle: People who do have some particular talent to "sell" are few. Most of us are just average guys or less. All these people have got two options, either "sell" the work of their arms only or find a way to "sell" crap as chocolate. Basically all those people who seek degrees in marketing or economy related "sciences" grow as high end crap sellers, then there is your corner shop owner that sells frozen fish as fresh etc.

daxonmacs 9. January 2009, 23:18

No Way sounds a little harsh. But nobody comes from zip to millions without scam or fraud. Except from winning one lotery or another maybe.
I have serious doubts about capitalism or neo-capitalism. It is basically immoral, cause based on destortion of balance.
On top of all that, it just does not add up, the sum itself is a fraud.

brunobear 10. January 2009, 01:29

There are a host of laws to protect people from fraud, but it is rare for anyone to face trial. Fraudsters and conmen are gone with the cash long before the law catches up with them. The law enforcers are not even interested anyhow. Evidence is often destroyed or the records too complex to deceifer. How can an individual take a fraudster to court, only the very rich could aford to do that. So we are just losers with a clear concience.

daxonmacs 10. January 2009, 01:42

That doesn't fill the stomach though. :smile:

Shaunak 10. January 2009, 03:26

What is shocking about this conman was that he was CEO of a fortune 500 IT major, listed is Stock Markets around the world!

daxonmacs 10. January 2009, 06:22

Did you ever hear of Lernout and Hauspie?
Their trial is still going on.
They ripped off the whole bunch of investors and shareholders, amongst which were banks as well.
Everybody with money trying to make an extra dime investing and joining this boom found themselves sold a whole lot of air, at high price.

brunobear 10. January 2009, 06:32

So if there is a watchdog, he is sleeping on the job.

daxonmacs 10. January 2009, 06:37

Or fed doggie cookies.

Besides it is no use having a watchdog when the poor thing is chained up all time.
A watchdog should be allowed to do its job and have some jurisdiction and power.

Barking alone does not cut it these days.

Shaunak 10. January 2009, 07:02

There are 3 regulators,

Securities and Exchange Board of India, Institute of Chartered Accountants of India and the ministry of corporate affairs. All of them caught napping ofcourse.....

The price of Satyam shares today plummeted to Rs.6.8 from Rs.180 the day before yesterday.....

Some suicides have been reported.... :sad:

daxonmacs 10. January 2009, 07:11

True it is sad.
And often hard earned money is invested in shares.
Usually however it is spare and playing money of the rich apart from some reckless self acclaimed stockmarket gods.
The ones that invest all and everything and are found on the pavements later, every three, four years wave.
It used to be seventy years.

Ha, the dog is caught watching its dreams :smile:

LorenzoCelsi 10. January 2009, 09:02

IMHO you haven't got the point. There can't be real laws against frauds because like I said above the economy is based on frauds. It is deeply related to the concept of commerce or trading on one side and related to the concept of politics and lies on the other side. In short to make money and to get power you must be on top of a pyramid.

The fact that we use cool words like "marketing" does not change the other fact that it consists in manipulate people so they give you their money either for something they don't actually need or for something that values much less than its price.

I could go on for ever.

qlue 10. January 2009, 11:19

Basically, the world's financial system is just a Grand scale pyramid scheme. All pyramid schemes will collapse eventually. awww

anirudhtagat 10. January 2009, 17:23

I think I'm going to buy now.
yeah, Buy now.

Shaunak 10. January 2009, 17:38

Funny no?
Not petrol stocks at pumps, and a flood of Satyam stocks in the markets.....

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