Friday, February 13, 2009

Manipulation Mafia!!

As sector after sector in India experiences wave after wave of consolidation, there are serious concerns emerging about a clutch of cartels stifling competition and taking the Indian consumer for a ride. In layman’s terms, a cartel can be described as a loose (usually informal and always unethical, if not illegal) association of companies in a sector. In a cartel, the companies outwardly ‘compete fiercely’ with each other; in reality they collude with each other, fix prices and raise entry barriers so high that a potential rival cannot barge into the sector even though the profits are alluring and enticing. Economics tells us that competition is good for the consumer; theory also tells us that companies relentlessly compete with each other to grab more market share. But that’s theory. In Reality given the sentiment of doubt that's prevailing in the industry where do investor's go to seek simple answers .....are we being duped...how does one do the math.... day after day stories are emerging of frauds& scams galore.....whose mercy are we at?? Every single day the fear of your savings being wiped out in a nano second ....No never....let us seek information to empower ourselves and let us do it today!!

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