Wednesday 14 January 2009

On the Satyam scandal

Source: My Paper, 9/1/9, p.A10
Headline: Satyam scandal will feed fears

Quote1:
The [Satyam] scandal underscores the risks of investing in a market with insufficient regulatory oversight and protections.

Comment1:
The word "insufficient" guarantees that some calamity will occur -- by definition. This feature in logic is known as a tautology, or a petitio.

Quote2:
Said Mr Geoffrey Coll, co-head of law firm Dewey & LeBoeuf's India practice group: "When you are dealing with riskier regulatory environments like India or other emerging markets, there are real risks that the companies are being held to lower standards by their own internal regulators than companies in the West." -- Reuters.

Comment2:
"Riskier regulatory environments" by definition means "real risks [of] ... lower standards". No new information is provided. This is another tautology or petitio.

END

No comments: