Oddly Relevant Nov-25-2012

The rise of Mexico: A few things that you might not know about Mexico: (1) it is already the world’s biggest exporter of flat-screen televisions, BlackBerrys and fridge-freezer , (2) a GDP growth rate faster than Brazil’s, (3) legal Mexican residents probably now outnumber undocumented ones, and (4) while in the 1960s the average Mexican woman had 7 children, she now has 2. A friendlier trader and immigration policy will likely do more good than harm. [Note: It really is a win-win.]…Source: http://www.economist.com/news/leaders/21567081-america-needs-look-again-its-increasingly-important-neighbour-rise-mexico?spc=scode&spv=xm&ah=9d7f7ab945510a56fa6d37c30b6f1709

What McKinsey thinks about the future of manufacturing: With 1.8 bn consumers joining the global marketplace in the next 5 years, McKinsey sees (1) further robotization that leads to (2) a fast-growing shortage of technical labors for advanced manufacturing in developed countries and (3) further blur in the boundary of manufacturing and servicing. [Note: hardly a new notion, some jobs are never coming back]…Source: http://www.economist.com/news/business/21567127-big-forces-are-reshaping-world-manufacturing-new-maker-rules

Fear of litigation is hobbling the art market: Authentication reassures buyers, which stimulates sales; yet the incredible forging technology accompanied with relentless lawsuits scared many experts from authenticating pictures—taking a $500 fee and getting sued for $10mm. Sales and volumes lag as a result, but the market since adopted by awarding living artists more money, as they can personally assure buyers. [Note: An illogical market of emotional commodity with no standard of valuation and validation. I wouldn’t touch it with a ten feet pole.]…Source: http://www.economist.com/news/business/21567074-fear-litigation-hobbling-art-market-collectors-artists-and-lawyers

Google Fiber debuts—and it’s better in every way: allegedly 100x faster and only $70/month, Google Fiber debuted in Kansas City and allow users to download feature-length films in under a minute. Google also promises arrival on time. [Note: It can’t come sooner. I will switch in a heartbeat. Too bad they won’t be here for a while]…Source: http://www.businessinsider.com/google-fiber-vs-your-cable-company-2012-11?op=1

What is a responsible system? Quote from Charlie Munger: “An example of a really responsible system is the system the Romans used when they built an arch. The guy who created the arch stood under it as the scaffolding was removed. It’s like packing your own parachute…the philosophy of responsibility [created by Charlie Frankel] says that the system is responsible in proportion to the degree that the people who make the decisions bear the consequences…you don’t create a loan system where all the people who make the loans promptly dump them on somebody else through lies and twaddle, and they don’t bear the responsibility when the loans are good or bad. [Note: I agree, but we all love embedded call options]…Source: http://www.farnamstreetblog.com/2012/11/philosophy-of-responsibility/