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Best of the Blogs: Is Google's Non-Voting Stock Split Evil?


Minyanville's daily roundup of some of the best financial commentary from around the Web.

This column highlights the most interesting and useful business and financial commentary from around the Web each day. Use our comments section to post your own suggestions for blog content that you've read or written.

Reuters: Felix Salmon
Link: Google's Evil Stock Split
"Dual-class voting shares were illegal for most of the 20th Century, but came back in 1986. James Sterngold's NYT story on their reintroduction is well worth a read, featuring as it does comments against the new rules from both Felix Rohatyn ('The one-share, one-vote rule is pretty fundamental to the market') and T Boone Pickens ('Let's face it, managements want this because they want to entrench themselves. They went to Congress to get protection and they didn't get it. So they went to the exchange to get protection, and they got it.') Even then, however, there were safeguards, including the crucial one that a majority of independent shareholders - excluding management and some directors - had to approve the move." (Also read The Business of Relying on Google.)

The New York Times: Bits
"If Apple loses the legal case filed against it and book publishers on Wednesday over e-book pricing, will it be deeply wounded in its growing rivalry with Amazon? Not likely, analysts say. The Justice Department's lawsuit against the company and five publishers, three of which settled the case, paints a vivid picture of Apple's thinking from several years ago about how it could use its entry into electronic books to hurt Amazon, a growing player in digital media and devices with the Kindle. At the time, Apple saw having a competitive e-book offering as a critical element of its strategy for introducing the iPad." (For related content, see Today in Tech: Apple's Loss is Amazon's Gain, But Not So Fast.)
The New York Times: Deal Book
"Kicking-off a series of earnings reports from the nation biggest banks in the coming days, JPMorgan Chase said Friday that it earned $1.31 a share in the first quarter of 2012, compared with $1.28 a share in the same period a year ago. On a reported basis, revenue rose 6 percent, to $26.7 billion from $25.2 billion." (Also Read JPMorgan Ready To Take Wall Street Top Spot.)

Credit Writedowns
Gary Shilling: Bearish on the US Economy; Calling for a Crash
"Gary Shilling recently wrote a five-part series for Bloomberg News on the economy. His view is that GDP growth comes primarily from consumers spending from either higher income or from reduced savings and debt accumulation. In his view, the US economy exhibits the latter pattern and he therefore expects another recession. He is therefore calling for stocks to drop 43% in 2012. Wow! Shilling is also long treasuries as a result."

The Capital Spectator
Link: Financial Advice Can Be Dangerous Too
"It's widely recognized that actively managed investing strategies generally face an uphill battle vs. indexing. The evidence at this late date, after countless studies of real world track records, is persausive if not overwhelming. And the empirical clues keep adding up, as The Wall Street Journal reminds. What's true for individual asset classes tends to apply with multi-asset class strategies too. That alone is enough consider indexing in a strategic context, but there are other incentives. Looking for financial guidance from certain professionals can also eat away at your wealth, warns a study that analyzed recommendations by advisors."
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