On 10/30/07, Gruss  wrote:
>
>
> Huh.  Well maybe it is dumb, but it seems to me that wealth is created
> and gained by those most hungry for it - and that's ALWAYS at the
> expense of others.


Economics, contrary to what Marx and other communist economic thinkers
believed, is not a zero sum game. As India, China, and the rest of the
industrializing world expand, their economies become new markets in their
own right. The pie gets bigger.

As for wealth creation, I agree that it is created by those who are
hungriest for it (and have the opportunity). But that could be the kid down
the street who decided to build computers out of his dorm room (Michael
Dell), or the guy that just wanted to sell stuff online (Pierre Omidyar), or
the house wife who wanted to prove to her husband that she could actually
make a business out of selling cookies (Mrs. Fields). I don't buy the
argument that wealthy industrialized societies are lazy.


Here's what Ratan Tata said when, with $12 Billion, he outbid Benjamin
> Steinbruch of CSN for Anglo-Dutch steel giant Corus Group:
>
> "This is the first step in showing that Indian industry can step
> outside its shores into an international market place as a global
> player."


Of course. In a global economy, companies from all over the world become
global players. Once upon a time, the U.S. played this role with Europe as
the established economic power. Europe is still doing fine last time I
checked. The pie got bigger.



> A smart investor might be placing a lot of money in "emerging
> markets".  But, as you say, maybe that's dumb.  Only our retirement
> accounts will know :)
>

Ask Warren Buffet what he thinks of the Chinese stock market right now. He
made a ton of money on Petro China, but now he is very leery of the huge run
up in asset valuations in China. You can't just throw a bunch of money at
"emerging markets" and expect to get rich. Lots of people tried that with
Russia back in the 90's and they got their asses handed to them. Mexico,
Argentina too. Remember the Asian currency crisis?


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