Moving an Inch Closer Towards a Free Market Economy

By: Mike_Stathis

A few months ago, I discussed the fact that the U.S. really doesn't have a free market economy, as so many claim. Once you spend some time examining the activities of various industries, this becomes clear.

A free market economy provides consumer choice because it fosters an environment for healthy competition.

A free market economy works to reward the best corporations. Ultimately, a free market economy provides cost efficiency for consumer goods and services.

For many years, U.S. corporations have swallowed up competition through various illegal means. As well, the FTC has permitted monopolistic mergers. As a result, consumers have few choices. They can choose from Wal-Mart or Target, AT&T or Verizon, Bank of America or JP Morgan, Microsoft, Apple or Google, Exxon, British Petroleum or Chevron, Kroger’s or Albertsons. The list goes on. 

Of course you have a few more choices, but the point is that the majority of many industries are primarily controlled by two or three corporations.  Rather than decreasing prices, we have seen industry collusion. This accounts for one of the reasons for the absence of customer service over the years.

Today, the customer is NEVER right. If you have an issue, many large corporations show you the door. They even have security guards to escort you back to your car rather than assure your shopping experience was pleasant.

I previously laid out a brief example of the absence of free market healthcare, pointing to illegal pay outs from drug companies so medical providers will use its drugs. There are many other examples as well, such as the AMA's control over medical school spots and the licensing board's control over medical licensing, and the virtual monopolies created by HMOs. I discuss these activities extensively in America's Healthcare Solution.

I closed out the previous article by mention of the anti-trust lawsuit against Intel, which paid off numerous computer manufacturers such as IBM and Dell so they would use Intel's microprocessors exclusively. This resulted in a tremendous blow to its only real competitor, AMD.

Yet, AMD was able to survive on a thread despite more than decade of these activities due to its strong business in Asia.  I was well aware of the illegal activities by Intel for over a decade. I can guarantee you there weren't many investment professionals who knew about the situation.

I detailed the implication of the success of the antitrust lawsuit for AMD and an additional company in the AVAIA newsletter several months ago.   

Today, the media released another article discussing the impact of these actions. No doubt, this case represents a small victory towards the reestablishment of a free market economy. But it's really only a drop in the bucket.

If you want to have a chance to do well with your investments, you must align yourself ahead of the curve. And you must work to remain there. 

You must have a good understanding of industry dynamics, valuations, market forecasting, sentiment, technical analysis and economics.

But you aren't going to get any type of valuable insight from the media or on websites scattered throughout the Internet. If you think otherwise, all that means is that you are way behind the curve. 

It takes decades for most to master these skills. Most investors (including professional) never master all of these categories.  Subscribers to our newsletter are positioned to not only deliver outstanding investment returns, but they are taught how to master the skills required to position themselves ahead of the curve.

If you haven’t already subscribed to our newsletter, we urge you to do so today. Each day you hesitate delays your advancement towards achieving investment greatness, while further putting your investments at risk.  

By Mike Stathis

www.avaresearch.com

Copyright © 2010. All Rights Reserved. Mike Stathis.

Mike Stathis is the Managing Principal of Apex Venture Advisors , a business and investment intelligence firm serving the needs of venture firms, corporations and hedge funds on a variety of projects. Mike's work in the private markets includes valuation analysis, deal structuring, and business strategy. In the public markets he has assisted hedge funds with investment strategy, valuation analysis, market forecasting, risk management, and distressed securities analysis. Prior to Apex Advisors, Mike worked at UBS and Bear Stearns, focusing on asset management and merchant banking.

The accuracy of his predictions and insights detailed in the 2006 release of America's Financial Apocalypse and Cashing in on the Real Estate Bubble have positioned him as one of America's most insightful and creative financial minds. These books serve as proof that he remains well ahead of the curve, as he continues to position his clients with a unique competitive advantage. His first book, The Startup Company Bible for Entrepreneurs has become required reading for high-tech entrepreneurs, and is used in several business schools as a required text for completion of the MBA program.

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