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US politics

Obamacare: Loopholes and enforcement

If you boil a frog very slowly, he may not jump out in time to save himself.

Poorly written law can sometimes be successful when the vast majority of people agree with the intent and there is bipartisan support to correct errors.

This is not the case with the Patient Protection and Affordable Care Act of 2010.

However, the most astounding thing about Obamacare is that the individual mandate is basically a misnomer — there are no penalties on individuals for not buying health insurance. Or are there? ECRV2Y9MMZ86

Flow of funds analysis

US corporations still in recovery mode

The rubble of 2008 has not yet been cleaned away.

The Federal Reserve flow of funds accounts provide a general view of the financial situation of US corporations as of Q4 2009. The question that I would like to address is simply this: To what degree have US corporations been able to improve their financial liquidity since the Crash of 2008? Whereas behavior of US households indicates a shift to more conservative financial positions — with far higher levels of saving than prior to 2008 — corporations do not seem to have taken a similar course.

US Politics

Economic uncertainty escalates

Whether the inflation 'money hurricane' will hit now, is less certain.

On March 23, 2010, President Obama signed the Patient Protection and Affordable Care Act. No one knows the full economic impact of this law. Never has legislation of such complexity and importance been passed by Congress and signed by the President on a purely partisan vote, against the wishes of the majority of the American people. The outlook for inflation has changed suddenly from a high level of probability to undetermined — uncertainty as to disbursement timing, combined with the outcome of elections in 2010 and 2012, provides possible scenarios under which things could get radically worse, or better.

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Featured articles on inside pages

Stock buybacks

The Stock Buyback Era evaluated

The buyback era began when the SEC allowed issuers to manipulate prices to give value to executive options. Stock buybacks since 1982, in 2008 dollars, total $5.77 trillion. More ...

Securities Analysis

Efficient Market Hypothesis: No proof

The Efficient Market Hypothesis continues to impede understanding of how capital markets work. This hypothesis suggests that world capital markets are guided by crowds of rational, competing, profit-maximizers, each trying to predict future market values of individual securities. The Efficient Market Hypothesis has never been proven.
More ...

US Politics

President Obama's Lincoln moment

In mid 2009, Barack Obama found that Lincoln's saying, "You can't fool all of the people all of the time," applied to his presidency. Profligate spending and unpopular health reform ended Obama's honeymoon. More ...

US equities

GAO favors overly-optimistic projections

In a study of the effect of the retirement of Baby Boomers on the price of equities, the GAO assumed that equities will provide real returns of 7% over the next decades. This figure is often cited in Wall Street promotional literature, but has no scientific basis.
More ...

US Bonds

The collapse of the dollar and US bonds?

The extreme spending of the Obama government, combined with irresponsible bank lending policies promoted by Barney Frank and Chris Dodd, portend rising interest rates, the collapse of the bond market, and the end of dollar supremacy. More ...

World Economy

Signs of US losing its groove?

Thirty years ago, US income from abroad was more than double the amount of income that the US paid to the rest of the world. This year, or the next, this foreign income surplus may disappear forever. Is the US 'losing its groove'? More ...

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2010-08-25 16:03