France will press ahead with a 1.2 billion-euro ($1.66 billion) contract to sell helicopter carriers to Russia because cancelling the deal would do more damage to Paris than to Moscow, French diplomatic sources said on Monday.
France has come under pressure from Washington and some European partners to reconsider its supply of high-tech military hardware to Moscow. It had said it would review the deal in October – but not before.
However, French diplomatic sources said on Monday the 2011 contract with Russia for two Mistral helicopter carriers, with an option for two more, would not be part of a third round of sanctions against Moscow.
“The Mistrals are not part of the third level of sanctions. They will be delivered. The contract has been paid and there would be financial penalties for not delivering it.
“It would be France that is penalized. It’s too easy to say France has to give up on the sale of the ships. We have done our part.”
And, we can’t have the sanctions hurt France, can we?
One of the attack helicopter carriers will be deployed in the Black Sea, where all the trouble began:
The first carrier, the Vladivostok, is due to be delivered by the last quarter of 2014. The second, named Sebastopol after the Crimean seaport, is supposed to be delivered by 2016.
How does France justify its intention to provide the ships?
“We are not delivering armed warships, but only the frame of the ship,” the source said.
That, of course, misses the entire point of sanctions. It is a punishment for wrong behavior. It is supposed to be a way one side teaches the other not to do what it has done. And the Western powers agreed that “strong sanctions” be imposed because of Russia’s unacceptable behavior. Now we see the exceptions being made – exceptions that Russia will, rightfully, view as weakness.
Additionally, that “frame” the French are dismissing as inconsequential will give Russia access to advanced technology. And these “frames” have quite a potent capability. The Mistral can carry up to 16 attack helicopters, such as Russia’s Kamov Ka-50/52; more than 40 tanks or 70 motor vehicles; and up to 700 soldiers.
As for leadership from the US insisting that the French not provide the Russians with advanced weaponry?
A French government source said at no point had the U.S. officially expressed any concern over the sale …
Another example of why “strong sanctions” is, in reality, an oxymoron, especially when the Western powers are concerned.
The shaky coalition of Western nations promising to strike Syria for its alleged use of chemical weapons is getting even shakier. In the UK, Prime Minister David Cameron is reconsidering:
David Cameron backed down and agreed to delay a military attack on Syria following a growing revolt over the UK’s rushed response to the crisis on Wednesday night.
The Prime Minister has now said he will wait for a report by United Nations weapons inspectors before seeking the approval of MPs for “direct British involvement” in the Syrian intervention.
Oh look … Cameron plans on getting the approval of Parliament before committing British troops to war.
That’s because opposition British politicians apparently play hardball while ours … well they talk and complain a lot:
Senior sources had previously suggested that Britain would take part in strikes as soon as this weekend which meant an emergency recall of Parliament was necessary on Thursday.
However, following Labour threatening not to support the action and senior military figures expressing concerns over the wisdom of the mission, the Prime Minister on Wednesday night agreed to put British involvement on hold.
The climbdown is likely to be seen as an embarrassment for Mr Cameron as he was determined to play a leading role in British military strikes, which had been expected this weekend.
France too is showing signs of waffling:
French President Francois Hollande said on Thursday that Syria needed a political solution, but that could only happen if the international community could halt killings like last week’s chemical attack and better support the opposition.
Hollande sounded a more cautious note than earlier in the week, when he said France stood ready to punish those behind the apparent poison gas attack that killed hundreds of civilians in Damascus.
He indicated that France was looking to Gulf Arab countries to step up their military support to the opposition to President Bashar al-Assad, after Paris said this week it would do so.
Not exactly the saber rattling that was going on a few days ago. It appears a “political solution” may be code words for “yeah, we’re climbing down too.”
Don’t expect a climbdown here. At least not anytime soon. Not only has President Obama said he doesn’t need Congress’s approval, he’s also decided he doesn’t need to inform the American people of his decision via a televised Oval Office announcement. However he would like the cover of a coalition (my, the shadenfreude here is delicious, isn’t it?).
If one had to guess, however, any strike this week would be sans the British and the French. And that may be enough to delay an American strike (don’t forget, President Obama claims he hasn’t made a decision yet).
Meanwhile in the Med, tensions spiral up as Russia decides to flex a little naval muscle in the area:
Russia will “over the next few days” be sending an anti-submarine ship and a missile cruiser to the Mediterranean as the West prepares for possible strikes against Syria, the Interfax news agency said on Thursday.
“The well-known situation shaping up in the eastern Mediterranean called for certain corrections to the make-up of the naval forces,” a source in the Russian General Staff told Interfax.
Interesting. And, if the strikes don’t happen now, who will claim to have helped call the coalition’s bluff?
As with most things concerning foreign affairs that this administration involves itself, this is turning into a debacle of major proportion.
France’s prime minister, Jean-Marc Ayrault, is hopping mad. In response to the French socialist government’s plan to significantly increase taxes on "the rich"—including a proposed 75% tax on incomes above €1 million—rich people are moving out of the country. This is intolerable to Mr. Ayrault.
"Those who are seeking exile abroad are not those who are scared of becoming poor," the prime minister declared after unveiling sweeping anti-poverty measures to help those hit by the economic crisis.
These individuals are leaving "because they want to get even richer," he said. "We cannot fight poverty if those with the most, and sometimes with a lot, do not show solidarity and a bit of generosity," he added.
It could be a scene right out of "Atlas Shrugged".
Mr. Ayrault is angry because rich Frenchmen are fleeing the country to keep their money, instead of handing it over to him. And he is joined by the baying of the other hounds in France’s left wing. Case in point, French actor Gerard Depardieu, whose announcement that he was moving to Belgium provoked responses such as:
Socialist MP Yann Galut called for the actor to be "stripped of his nationality" if he failed to pay his dues in his mother country, saying the law should be changed to enable such a punishment.
Benoît Hamon, the consumption minister, said the move amounted to giving France "the finger" and was "anti-patriotic".
In a stinging editorial, Libération, the left-leaning daily, called him a "drunken, obese petit-bourgeois reactionary".
They are owed this money, by God, and how dare you try and steal it away from them!
This is always the implicit argument of the Left: They have the first claim to your income, and you have a duty to honor that claim. No matter how you earned that money, they have the right to take as much of it as they please away from you, and if you dispute that right, you’re unpatriotic, and should be punished.
This is Leftism in a nutshell. You are not a free individual, but rather a serf of the state or some other politically-defined "larger community" that has an absolute claim on your property and income that you may not defy. This is no different in concept, or in practice, than the idea of ancient Babylon or Akkad that every subject is a slave of the king.
You can dress it up in high-sounding phrases like "solidarity" or "social justice", "helping the poor" all you want, and it still amounts to nothing but the simple declaration that the state owns you.
The people who believe in this idea are the enemies of freedom, and should be treated as such.
The “you didn’t build that” gang’s attempt to get the “rich” to pay what they characterize as their “fair share” in taxes (when in fact in almost every western country they pay more than their fair share) is about to get tested in France:
The call to Vincent Grandil’s Paris law firm began like many others that have rolled in recently. On the line was the well-paid chief executive of one of France’s most profitable companies, and he was feeling nervous.
President François Hollande is vowing to impose a 75 percent tax on the portion of anyone’s income above a million euros ($1.24 million) a year. “Should I be preparing to leave the country?” the executive asked Mr. Grandil.
The question asked by the client is typical of what will happen if such a tax is imposed … anywhere. If you believe “the rich” are going to lay back and take it, you’re crazy. They will do what is in their best interest and paying 75% taxes on what they earn isn’t in their best interest. We’ve often talked about the Laffer curve and how it applies to taxes. How at some percentage of taxation, revenues will drop and in some cases drop dramatically.
That’s precisely what that client’s question indicates will happen in France with a 75% “rich” tax.
France has a history of punitive taxation which is one reason it no longer is considered much of a economic power:
[T]he proposal is the latest red flag in a country that has long labored under the image of being a difficult place to do business. France has a 33 percent corporate tax rate — the euro zone’s second-highest, after Malta’s 35 percent. That contrasts with the 12.5 percent rate in Ireland, which has deliberately kept a lid on corporate taxes as a lure to businesses.
Businesses don’t have to stay and take France’s coercive tax rates anymore. There are countries more than happy to accept their businesses and the boost to the economy they bring.
And, that goes for “le rich” as well. ‘Leaving the country’, in the case of France, doesn’t necessarily mean moving too far:
“It is a ridiculous proposal, but it’s great for us,” said Jean Dekerchove, the manager of Immobilièr Le Lion, a high-end real estate agency based in Brussels. Calls to his office have picked up in recent months, he said, as wealthy French citizens look to invest or simply move across the border amid worries about the latest tax.
“It’s a huge loss for France because people and businesses come to Belgium and bring their wealth with them,” Mr. Dekerchove said. “But we’re thrilled because they create jobs, they buy houses and spend money — and it’s our economy that profits.”
You’d think, for anyone with an ounce of common sense, this outcome would be obvious. Apparently not. And so France will drive off its rich, see revenues in that income bracket drop even while the tax percentage is increased to 75% and attack those who’ve avoided those taxes as “greedy”. Just watch.
Of course I agree with the words of Dr. Thomas Sowell in that regard:
“I’ve never understood why it is “greed” to keep money you’ve earned, but not greed to take somebody else’s money”.
Yeah … me neither. Right now, the greediest entities on earth are governments.
If this is any indication of how France’s new president elect, Francois Hollande, plans to govern, I pity the French as well as the rest of Europe:
The 57-year-old Socialist has openly admitted that he “does not like the rich” and declared that “my real enemy is the world of finance”. This means taxing the wealthy by up to 75 per cent, curtailing the activities of Paris as a centre for financial dealing, and ploughing millions into creating more civil service jobs.
Add an explicit threat to renegotiate the euro pact to replace austerity with “growth-creating” spending, and you have one of the most vehemently left-wing programmes in recent history.
Of course reading through that helps one understand why, after learning of his victory, President Obama immediately invited him to the White House. Let’s see, tax the rich, go after the financial sector, grow government jobs and borrow, borrow, borrow to spend, spend, spend.
Huh … sounds familiar.
Brett Arends is skeptical about Europe’s current direction:
Their proposal is preposterous. Anything can happen in this life, but it would be remarkable indeed if this idea got off the ground. Anyone pinning their hopes that this will solve the crisis needs to think it through.
Why would the Portuguese accept the right of Germany to impose budget cuts on their country? Why would the Greeks?
Would we accept that role for the Chinese and the Japanese, the biggest holders of Treasury debt? How would you feel if you opened the paper to be told that the new Sino-Japanese “Fiscal Stability Commission” in Washington had just slashed your grandma’s Social Security checks by one-third, scaled back federal highway repairs, and that it would impose a 10% national sales tax?
That is, after all, effectively what is being offered to the people of Greece, Italy, Spain, Portugal and Ireland.
It’s absurd. There is no reason why these countries should have to surrender sovereignty. They can simply, where necessary, default. A default by, say, Louisiana would not destroy the dollar. Neither did the bankruptcy of Enron or Lehman.
What happens when after signing the new treaty (if it ever actually comes to be) the Greeks or Italians decide to thumb their noses at the EU and default anyway? Kick them out? Isn’t that right where we are now? Isn’t the fear that countries are kicked out or leave leading to financial chaos and defaults? Will these countries truly continue to pay their bills and accept austerity in the face of a severe recession/depression?
If that is the concern, just as I have been pointing out for some time, anything short of true fiscal and political union will fail. The right of existing states to refuse to honor the treaty (remember the last one was treated as inconsequential by violators, including Germany and France) cannot exist which means the right of states to secede or be expelled from the union cannot exist. If that option is not off the table then Eurozone bonds cannot be treated as risk free. If they are not seen as risk free then they will be rated accordingly and the Eurozone will be unstable as Louis-Vincent Gave points out:
Basically, we have to remember that the average sovereign debt buyer is not a hazardous investor. The guy who buys a government bond is looking for a very specific outcome: he gives the government 100 only so he can get back 102.5 a year later. That’s all the typical sovereign debt investor is looking for. Nothing more, nothing less.
But now, the problem for all EMU debt is that the range of possible outcomes is growing daily: possible restructurings, possible changes in currencies, possible assumption of other people’s debt, possible mass monetization by the central bank etc. Given this wider range of possible outcomes, and the consequent surge of uncertainty, the natural buyer of EMU debt disappears. Again, the typical sovereign investor is not in the game of handicapping possible outcomes; he is in the game of getting capital back!
This is very problematic because once uncertainty creeps in, bonds will tend to gradually drift towards what I have come to call the bonds “no-man’s-land”. Basically, once sovereign bonds reach 90c to par, they tend to have a much higher volatility and much greater uncertainty. As a result, they are no longer attractive to the typical bond manager or asset allocator looking to buy bonds to diversify equity risk (think how Italian bond yields are now correlated to European equities. If you want to be bullish Italian bonds, you may now just as well spend a fifth of the money and buy European banks for the same portfolio impact…). And once a bond enters into no-man’s-land, it has to fall a lot before attracting the attention of distressed debt and vulture investors (usually yields of 15%+). So the first obvious problem is that more and more European debt markets are entering this “no man’s land” bereft of “normal” investors.
Do these countries need the Euro over the long term to be prosperous? More Brett:
The British look smarter and smarter for staying out of the euro area in the first place. Prime Minister John Major, and then, later, Chancellor of the Exchequer Gordon Brown, each took the decision to keep the British pound free. At the time fashionable opinion predicted disaster for the Brits. So much for that.
(Predictably, fashionable opinion now says the Brits look “isolated” for staying out. Really, you couldn’t make it up).
My guess is Brett is correct that we are no where close to a real resolution, which is a path to political unification or breakup.
It has long been clear the Franco-German duo wanted to use their shared currency to bludgeon the continent into something closer to a federal system.
Any investor pinning their hopes on this bird flying needs to be aware it looks a lot more like a turkey than an eagle.
This week’s meeting of European leaders already marks the fifth “summit” to solve the region’s debt crisis since early 2009.
My favorite comment this time: “After a series of ‘final’ summits, it would be nice this time to have a real ‘final’ summit.” That was from Standard & Poor’s chief European economist, appropriately-enough named Jean-Michel Six. What’s the betting Mr. Six will be attending Summit No. Six in the new year?
Which is not to say that the ECB or some other entity couldn’t stem the immediate crisis and kick the can further down the road. Maybe, but if so the question is how far? A week, a year, five years? That I cannot answer now.
First among the reactions globally was that of China:
China bluntly criticized the United States after the S&P ratings cut to AA-plus, saying Washington had only itself to blame and calling for a new stable global reserve currency.
"The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone," China’s official Xinhua news agency said in a commentary.
Xinhua scorned the United States for a "debt addiction" and "short sighted" political wrangling. China, it said, "has every right now to demand the United States address its structural debt problems and ensure the safety of China’s dollar assets."
"International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country," Xinhua said.
If you think it is bad now, consider our predicament if the dollar was to be replaced as the new global reserve currency. However it is ironic to be lectured by the Chinese on economic matters given their ideological bent. Communists telling Capitalists (pseudo anyway) how they should conduct their business.
France, on the other hand is expressing faith in the US’s ability to get its house in order, as is Poland’s Prime Minister:
France’s Baroin said France had faith in the United States to get out of this "difficult period." Friday’s U.S. unemployment numbers were better than expected and so things were heading in the right direction, he said.
"One should not dramatis, one needs to remain cool-headed, one should look at the fundamentals," he told France’s iTele.
"There is no need for panic," Polish Prime Minister Donald Tusk said. "We will see in August, and maybe more intensively in September what the effects for the world economy will be."
Of course, with the huge problems in Europe, both France and Poland are inclined to play down the significance of a US downgrade. And more interesting than what will happen later this month or next may be what happens on Monday, the first day global markets will mark their reaction to the US credit downgrade:
Because the S&P move was expected, the impact on markets may be modest when they reopen on Monday. But the ratings cut may have a long-term impact for U.S. standing in the world, the dollar’s status and the global financial system.
"The consequence will be far reaching," said Ciaran O’Hagan, fixed income strategist at Societe Generale in Paris.
"It will weigh on secure assets. The bigger reaction will be on risky assets, including equities and on agencies (Freddie Mac, Fannie Mae) and states backed directly by the federal government."
But he added: "U.S. Treasuries will remain a benchmark. This is a ship which takes a long time to turn around."
Norbert Barthle, a budget expert for German Chancellor Angela Merkel’s conservatives, said the downgrade would certainly provoke further turbulence in markets.
Everything mentioned is very important to the future of the US economy and its financial health. Unfortunately most of it is negative. In the next few months we’ll see how this shakes out, but at this point, even the optimists are pessimistic.
And mission creep continues apace because, as most military experts would have told you, you can’t change a government with a “no-fly zone” and only airpower.
French and British officials said this week that they were sending more than a dozen attack helicopters to allow for more precise ground attacks, particularly around Misurata, where loyalist forces continue to fire mortars and artillery despite rebel gains and heavy air attacks.
With no troops on the ground, NATO planners and pilots acknowledge that they often cannot pinpoint the shifting battle lines in cities like Misurata. “The front lines are more scattered,” said Col. L. S. Kjoeller, who commands four Danish F-16s flying eight daily strike missions from Sigonella air base in Sicily.
Unsaid in those two paragraphs, but reported elsewhere, are that groups of special operations types will be inserted to do targeting for the helicopter attack assets. Yes, “boots on the ground”.
And why is this supposed war of days taking months if not longer? Well, they obviously underestimated their foe and overestimated their capabilities. Also, they planned for one mission and tried to execute another (no-fly and regime change) and don’t have the assets necessary to accomplish that real mission). We’re now seeing them begin to understand that they may have bitten off more than they can chew – at least as they’re presently arrayed.
Adm. Samuel J. Locklear III, the overall commander of NATO forces in the Mediterranean, said from his office in Naples that the allied mission has largely achieved its goal of protecting civilians, especially in eastern Libya, and has seriously damaged the Libyan military.
“Qaddafi will never be able to turn a large army on his people again, because it’s gone,” said Admiral Locklear, noting that the air campaign has wiped out more than half of Libya’s ammunition stockpiles and cut off most supply lines to forces in the field.
But the admiral acknowledged Colonel Qaddafi’s resiliency, and said that without sustained political and economic pressure as well, “the military piece will take a very long time.”
Not really – if its mission is to establish and enforce a no-fly zone as we were told in the beginning. And as is obvious, Adm. Locklear certainly isn’t talking days or weeks anymore. He’s talking months and possibly longer. Meanwhile, British papers are reporting the war of “days not weeks”, that their present visiting guest talked them into, is in the $1 billion to 1.5 billion pound range – a cost the debt ridden country can ill afford. Makes you wonder how much longer they’re willing to wage it (even as they escalate their presence with attack helicopters).
Nice mess you’ve got there Mr. Obama. So much for being against “dumb wars”, huh?
I’d love to tell you I’m surprised (well I am somewhat surprised that the French are already trying to enforce the NFZ), but finding out that Gadhafi’s forces are still attacking despite declaring a “cease fire” seemed pretty predictable at the time.
According to Nicholas Sarkozy, the French have the situation well in hand:
French President Nicolas Sarkozy said allied air forces had gone into action on Saturday over Libya and were preventing Muammar Gaddafi’s forces attacking opposition fighters and civilians.
"Our planes are already preventing air attacks on the city (Benghazi)," he said adding that military action supported by France, Britain, the United States and Canada and backed by Arab nations could be halted if Gaddafi stopped his forces attacking.
Well, that’s nice. Seeing as how air attacks don’t really seem to have been very decisive one way or the other to this point, and based on everything I’ve read, I’d suggest the benefit is marginal at best.
Gaddafi’s forces also battled insurgents on the outskirts of the opposition-held city of Benghazi on Saturday, defying world demands for an immediate ceasefire and forcing opposition fighters to retreat.
The advance by Gaddafi’s troops into Libya’s second city of 670,000 people appeared to be an attempt to pre-empt Western military intervention which diplomats say will come after an international meeting currently underway in Paris.
A Libyan opposition spokesman said Gaddafi’s forces had entered Benghazi while a Reuters witness saw a jet circling over the city shot down and at least one separate explosion near the opposition movement’s headquarters in the city.
"They have entered Benghazi from the west. Where are the Western powers? They said they could strike within hours," opposition military spokesman Khalid al-Sayeh told Reuters.
See what I mean about “marginal”? Apparently they have struck “within hours” but taking out a single plane that apparently wasn’t doing much more than recon isn’t going to swing the balance of power to the rebel side. And, as mentioned yesterday, once Gadhafi’s forces enter the city, it will become much too dangerous to strike within the city for fear of collateral damage killing civilians (unless you put SOF folks in with the rebels to handle that sort of job – but remember, we’re not committing any ground troops).
Benghazi isn’t the only place Gadhafi’s troops are on the move:
A witness told Al Arabiya television on Saturday that Zintan in western Libya was being bombarded and Libyan leader Muammar Gaddafi’s tanks were approaching the town. "Now we are being bombed in Zintan from more than one direction: from the north and the south," said the witness, who was not identified.
"There are tanks heading towards the southern entrance of Zintan, around 20 to 30 tanks, which are hitting the city and residential areas in the south," he said.
Obviously, “preventing air attacks” isn’t going to change much is it? The tanks are still rolling on.
The words are over, the threats have been made – now it is put up or shut up time.
I think involvement in this is a mistake. We’ll see how it goes.
UPDATE: From the Washington Post:
Forces loyal to Moammar Gaddafi entered the eastern rebel stronghold of Benghazi early in the day after shelling and fierce fighting, a fresh act of defiance of U.N. calls for a cease-fire. Government troops in tanks and trucks entered Benghazi from the west, in the university area, and began to shell the city, including civilian areas. Intense fighting broke out in some enclaves. The city of 1 million quickly became a ghost town, with residents fleeing or seeking cover in barricaded neighborhoods.
So they’re in Benghazi. Apparently there is a huge civilian exodus to the East (Egypt).
Oh, and about that airplane that was shot down circling Benghazi:
A warplane was shot down over Benghazi, and rebel leaders later claimed it as one of their own. While they said mechanical problems caused the crash, calls from mosques across the city suggested that friendly fire brought down the plane. “Don’t attack the airplanes, because these are our planes,” a mosque preacher urged over loudspeakers.
Apparently the rebels shot down their own plane.
But the besieged town of Misurata, 130 miles east of Tripoli, was still coming under heavy artillery fire, residents said, and there were also reports of continued fighting around Ajdabiya, even farther to the east. The assaults on rebel-held towns took place despite government promises of a cease-fire.
On the rather daffy side (yeah, couldn’t help it):
In what appeared to be a desperate attempt to avert military action, Gaddafi sent two letters to international leaders, according to deputy foreign minister Khaled Kaim, who read the letters to journalists. One was a warm, conciliatory note to Obama, and the other was a sharply worded, menacing message to the United Nations, France and Britain.
To Obama, he wrote: “If Libya and the US enter into a war you will always remain my son, and I have love for you.” Libya is battling al-Qaeda, he said, seeking Obama’s advice. “How would you behave so that I can follow your example?” he asked.
In the other letter, addressed to U.N. Secretary General Ban Ki-moon and the leaders of France and Britain, he warned that the entire region would be destabilized if they pursued strikes against Libya. “You will regret it if you take a step to intervene in our internal affairs,” he wrote.
Why does Gadhafi consider Obama his “son”?
The French Finance Minister has noticed that the disparities within the European economy are causing a number of issues, and fingers the….Germans!
“Clearly Germany has done an awfully good job in the last 10 years or so, improving competitiveness, putting very high pressure on its labour costs. When you look at unit labour costs to Germany, they have done a tremendous job in that respect. I’m not sure it is a sustainable model for the long term and for the whole of the group. Clearly we need better convergence.”
You see, having an economy so efficient that you can be more competitive than your neighbors with high wages and a high standard of living means you need to change so that the French, Greeks and other assorted PIIGS can continue down the path they have chosen. The Germans are just too darned efficient for the greater good.
In the interest of being helpful I have identified several important initiative’s that the Germans should adopt to align themselves more fully with their neighbors.
- Do not keep your debt levels below 3% of GDP…ever.
- Encourage massive strikes at the drop of a hat.
- Make public services far more attractive than working in the private sector, with massive strikes and riots to keep it that way.
- Make it almost impossible to layoff anyone for any reason.
- Mandate at least six weeks paid vacation for every employee.
That should make sure your economy is not too efficient.
Is China’s economy about to rollover?
I won’t explain this, just let it sink in:
I don’t think it will be as bad as Japan, but the evidence isn’t giving me any great comfort either.
I love Apple, and I love my iPhone. Still, is Apple really worth more than Walmart? Or these various baskets:
- 4x the global smartphone market
- 5x the global music market
- 100x the global smartphone app market
- Enough to buy HP, Dell and Hitachi, with mad money left over for Xerox or Seagate
Yep, that whole efficient markets hypothesis may take a beating again.
Did any of you see Michael Lewis on 60 Minutes Sunday? If you didn’t, I highly recommend it.
Cross posted at The View From the Bluff