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| US politics By John Schroy, on June 27th, 2009 |  4 comments  President Obama wants to increase the number of people covered by subsidized health insurance. However, his plan does not call for an increase in the number of doctors. He claims the plan will be paid for by greater efficiency, without explaining how this will be achieved. One thing is sure, the very rich and powerful will continue to get the best treatment, while fraudsters will benefit from increased government regulation. For the rest, rationing and higher costs seem inevitable. June 27th, 2009 | Print Article |  Email Article |  Topics: Barack Obama, Brazil, Medicare, Obamacare | Category: US Politics | 4 comments |  Short urlThe coming inflation By John Schroy, on June 25th, 2009 | Leave a comment  Money market funds, like banks, receive money from depositors repayable on demand, which they invest in debt instruments. Their spreads are far less than those of commercial banks and they have no reserve requirements. The difference between a MMF and a commercial bank is that one issues equities while the other issues debt callable on demand. When inflation hits, short-term interest rates with MMFs will be the first to rise because of their razor-thin effective spreads. June 25th, 2009 | Print Article | Email Article | Topics: bank reserve requirements, Barack Obama, Harry Reid, Jimmy Carter, money market funds, Nancy Pelosi, S&L Crisis | Category: Inflation | Leave a comment | Short urlFinancial economic theory By John Schroy, on June 16th, 2009 | Leave a comment  A recent poll of members of the British Chartered Financial Analyst Institute revealed that 77% of its members disagreed that investors acted rationally. This implicit rejection of the Efficient Market Hypothesis has far reaching implications for the structure and management of capital markets, including Modern Portfolio Theory, the use of betas, the justification for index funds, and the M&M Theories. Will the economists that proposed these theories return their Nobel prizes? June 16th, 2009 | Print Article | Email Article | Topics: beta, CAPM, CFA, efficient market hypothesis, index funds, Miller and Modigliani, Modern Portfolio Theory | Category: Economic Theory | Leave a comment | Short urlFeatured articles on inside pages
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