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Investing/Strategies / Mechanical Investing
|Subject: Re: OT: Wealth||Date: 3/7/2013 12:41 AM|
|Author: tdbear2||Number: 242130 of 255646|
Let's suppose farmers in one area of the country are dependent on one distributor who has obtained control of the only road to the ultimate market. That distributor could extract a share of the product value which is disproportionate to the costs of distribution (including compensation for cost of capital and typical risks). The same would hold if one farmer controlled all the land suitable for growing (let's say) tomatoes. That farmer might extract more for the tomatoes we need (or desire). These dominant positions in the markets create distortions.
That's why Teddy Roosevelt (R) put through anti-trust laws.
All M & As go through a process to ensure that this won't happen.
If you know of such a case, please contact these folks ASAP:
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