Is the SEC obsolete?
By John Schroy, on November 20th, 2006 |

The regulatory principles of the United States Securities and Exchange Commission were established three-quarters of a century ago and have been copied by securities regulators throughout the world. However, the markets, technology, system complexity, and investor sophistication have all changed over this period. The SECs concept of non-merit regulation no longer adequately protects investors.
US Bond Market
By John Schroy, on November 19th, 2006 |

The Democratic Party and its supporters have indicated a willingness to enact legislation that will reduce demand for bonds, while increasing supply: a recipe for lower bond prices and higher yields. Questionable economic policies are expected to include support for Fannie Mae, protectionist trade measures, and large pensions for unionized civil servants.
Municipal bonds
By John Schroy, on November 15th, 2006 |

Municipal pension fund problems are primarily the fruit of unionization of public employees. Over the last generation, trade unions have turned from their traditional base of industrial workers (eroded by factory closings due to excessive labor demands) and have fixed on the juicy target of tax-supported government workers. This could result in higher interest on municipal bonds of cities with powerful government service unions, along with increased taxes, and downward pressure on real estate values in certain cities.
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