Bits and Pieces
Brian Trumbore
President/Editor, StocksandNews.com

Sometimes the best laid plans go awry. I've been traveling the past two weeks in the great American West and Plains; having flown to Tucson, rented a car, and driven well over 2,000 miles through southeastern Arizona, New Mexico, Colorado, Wyoming, Nebraska and South Dakota.

So I thought during the trip I'd glean some price data, particularly in terms of gasoline. Consider this a time capsule. Not the most earth-shattering stuff, I'll grant you, but it's as good a field study as the nationwide surveys you've been supplied.

Needless to say I tanked up quite a bit, most of the time $20 worth as there were countless stretches where I didn't dare let the tank get too low. In other words, many a time where it was 50- 70 miles before the next station.

The price I paid at the pump, simple "self-serve regular":

Tucson, AZ?$2.12
Benson, AZ?$2.59 [couldn't figure this one out]
Lordsburg, NM?$2.33
Hatch, NM?$2.39
Raton, NM?$2.49
Colorado Springs, CO?$2.29
Scottsbluff, NE?$2.21
Spearfish, SD?$2.21
Deadwood, SD?$2.19

[The latest figure on the national average was $2.22, and of course state taxes come into play in the above.]

I also decided to check out the price of a Big Mac, stopping at many a McDonald's along the way. Yes, I ate them and it's amazing how uniform the taste is. I like McDonald's, though back home I have to admit I only go there about once a month, if that.

Big Mac

Lordsburg, NM?$2.89
Truth or Consequences, NM?$2.79
Raton, NM?$2.99
Cheyenne, WY?$2.79
Chadron, NE?$2.79

I'm curious as to why Raton was $2.99. All of these places were along the interstate, except for Chadron, which is in the boonies. [Good Division II football team, however!]

I'd give you the price of beer during my trip, but that would be revealing perhaps too much.

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In light of the fact there is little 'meat,' so to speak, in the above exclusive reporting, I just wanted to add some commentary by New York Democratic Senator Charles Schumer and New York Republican (Independent) Mayor Michael Bloomberg on New York City's imperiled position in world financial markets. It's a topic I've been writing about in "Week in Review" and it's critically important.

Just this week I'll be commenting in my other column on how Hong Kong has topped New York in terms of total market capitalization of initial public offerings (IPOs) in 2006. [London is first.] I'm not sure Schumer and Bloomberg were aware of this fact when they wrote their op-ed in the Wall Street Journal on November 1.

Four factors are key these days. Globalization of the capital markets, overregulation, frivolous litigation and incompatible accounting standards.

Charles Schumer and Michael Bloomberg:

"The first is beyond our control; advances in technology and communications are allowing capital to flow more freely, making it much easier to locate financial activities anywhere in the world. But we can, and must, do something about the other three factors to maintain and expand our competitive edge.

"First?there are more than 10 federal, state and industry regulatory bodies in the U.S. The British have only one such body. Industry experts estimate that the gross financial regulatory costs to U.S. companies are 15 times higher than in Britain?.

"With the benefits of hindsight, The Sarbannes-Oxley Act of 2002, which imposed a new regulatory framework on all public companies doing business in the U.S., also needs to re-examined. Since its passage, auditing expenses for companies doing business in the U.S. have grown far beyond anything Congress had anticipated?.

"Second, what lessons can we learn from other nations' legal environments? The total value of securities class-action lawsuits in the U.S. has skyrocketed in recent years, to $9.6 billion in 2005 from $150 million in 1997. The UK and other nations have laws that far more effectively discourage frivolous suits?.

"Third, what lessons can we learn from other nations' experiences with international accounting standards? Most European and Asian countries have already begun to adopt international accounting standards, which businesses tend to prefer over the American system. Yet we have set no timetable for doing the same.

"In the last quarter of the 20th century, we achieved an almost exquisite balance between regulation and entrepreneurial vigor in American financial markets. We learned that too much regulation stifles entrepreneurship, competition and innovation; while too little regulation creates excessive risk to industry, investors and the overall system?.

"New York cannot afford to lose its place as the global leader in financial services. We have to carefully redefine this balance of innovation and regulation. That is what we seek to do over the next several months.

"Our ability to do that, and to answer these three questions, will determine the future of New York - and, in many ways, the nation."

What Schumer and Bloomberg don't come right out and say is that tens of thousands of very high-paying jobs are at risk, possibly far more. Not just in New York but around the country, and we have only ourselves to blame.

I've mentioned from time to time how even before Enron, WorldCom et al, there was this feeling that our markets were superior. I've often stated that I'm not real keen on emerging ones because of the "lack of transparency."

But what we've learned the past few years in particular is that this is false. While personally I would still be very careful in placing bets overseas, there is no doubt we could learn a lesson or two from Britain especially. And this idea we have 10 different regulatory bodies versus one in other countries is absurd. Unfortunately, these kinds of changes will not occur overnight. The states will be loath to give up power, of that you can be sure.

Wall Street History will return next week. A look at the price of oil?.from an equity index standpoint, not at the pump.

Brian Trumbore

BUYandHOLD does not recommend any securities. The securities mentioned above are being used for illustrative and informational purposes only and should not be regarded as an offer to sell or as a solicitation of an offer to buy.