Commonsense Economics:
By John Schroy, on May 16th, 2010 | 
Eventually, at some point, without an efficient market, common stocks become mere baseball cards.
Sooner or later, some Baby Boomer, pressed to pay his bills in retirement, will find that one can’t live off the dividends of common stock and that when everyone is trying to cash out their holdings at the same time, market prices plunge to levels that seemed inconceivable for generations. But it will simply be the cost of allowing an inefficient market to flourish for so long.
This article discusses the concept of inefficient markets and the practical consequences.
US equity markets: a new paradigm?
By John Schroy, on October 6th, 2009 | 
The US stock market rally of 2009 revealed flow of funds patterns not seen for over a generation. The rise in prices does not seem to be based on fundamentals. There are barriers to continued recovery.
Does 2009 represent a paradigm shift in the market of US equities?
Or is this simply a signal of a fleeting bubble, like the rally of 1932?
Stimulus money flows to savings
By John Schroy, on October 3rd, 2009 | 
Government economic stimulus programs that have sent money directly to US households have resulted in more saving and less spending.
Low interest rates have encouraged individuals to move from debt instruments into equities.
Should extreme government spending programs lead to inflation, as expected, the 2009 recovery in equity prices may prove unsustainable.
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