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| Subject: REITs A Real Estate Investment Trust or REIT (pronounced /?ri?t/) is a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. In return, REITs are required to distribute 90% of their income, which may be taxable, into the hands of the investors. The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks. The inefficient market By John Schroy, on April 21st, 2009 |  One comment  The Crash of 2008 showed that the Efficient Market Hypothesis was fantasy. Although there is a huge amount of free information about investments available on the Internet, this takes time to extract and understand and time has a cost. With too much free information, the law of diminishing returns kicks in. Critical information passes unnoticed. Technologies are now available that allow us to take advantage of free information more effectively. April 21st, 2009 | Print Article |  Email Article |  Topics: American Stock Exchange, Bloomberg, Capital Market Taxonomy, Capital Market Wiki, closed end funds, collaborative research, crowdsourcing, efficient market hypothesis, ETF Connect, Neuberger Berman, REITs, semantic wiki, Yahoo Finance | Category: New Economic Theory | One comment |  Short urlThe decline of the dollar By John Schroy, on March 30th, 2009 | Leave a comment  Foreigners hold $16.9 trillion in dollar financial assets, accumulated through years of selling goods and services to the US. Profligate deficit spending by the Pelosi-Reid Congress increases the probability of dollar inflation. If foreign governments were to convert their holdings of dollar financial assets into non-financial assets, like US REITs, they can guard against dollar inflation. They might also gain a position that, in the extreme, would be against US national security interests. March 30th, 2009 | Print Article | Email Article | Topics: Bank of China, Barack Obama, Barney Frank, China, Chris Dodd, Harry Reid, Inflation, Nancy Pelosi, REITs | Category: Foreign Investors | Leave a comment | Short urlDevaluation threatens investors By John Schroy, on March 30th, 2009 | Leave a comment  In the financial crisis, the US Treasury took steps to protect the dollar as the world reserve currency, allowing AIG funds to pass through to foreign banks and engaging in currency swaps with foreign central banks. However, the Pelosi-Reid Congress, by unprecedented domestic spending, has raised a real possibility of future high-level inflation. It will be up to US voters whether government finances return to a reasonable basis. The Federal Reserve cannot neutralize the negative impact an out-of-control Congress. March 30th, 2009 | Print Article | Email Article | Topics: AIG, Barack Obama, China, Inflation, Paul Volcker, REITs, reserve currency, Timothy Geithner, TIPS, US dollar, US Treasury | Category: World Economy | Leave a comment | Short urlFeatured articles on inside pages
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