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To: TobagoJack who wrote (265210)	10/30/2003 4:56:18 PM
From: Mark Adams	Respond to of 436258

The field will not likely be levelled by what Buffett is suggesting, because (a) the manufacturing of microwave oven will not likely return to USA I agree. I haven't purchased a microwave in quite a number of years, perhaps approaching 10 now. I think I paid just shy of $100 for a mini model, liking small things. That I can buy one today for $60 is novel, but not enticing. So I don't think a small increase or decrease in the price of a microwave will have much of an impact in my life, though I can see that those living in India with growing wealth and lacking one might find marginal price changes of interest. stifling regulations Was mentioned in an IMF speech as a barrier in developing nations when it came to capital creation. In the US, I think some regulations change with the winds of politics. Like regulation of COx and Sulphur emmisions... The Mystery of Capital. Hernando De Soto offers a simple explanation for why the poor do not have access to credit in developing countries. The answer, according to him, is that the poor do not have access to credit, because they do not have official title to their properties. If slum dwellers could use the huts in which they live as collateral, they could borrow enough to set up small businesses and escape poverty. {deleted segue ... } It finds that in Peru, the number of days it takes to satisfy all the permissions needed to start a new business is over 171. By contrast, the number of days it takes to obtain all the permissions to start a new business in Canada is 2 and in the United States it is 7. In our own work, we have found that countries where financial markets are underdeveloped (and thus access to credit restricted) are also countries where the number of days to start a new business is high. In other words, the lack of access to credit is a barrier to entry much like the permissions needed to open businesses. There is a deeper and broader pattern here than simply the lack of recognition of customary property rights... imf.org Still not fully digested...