Wingnut Welfare For the Chicago School of Economics

Nov. 7 (Bloomberg) — Investor David Booth, who credits his success to the “life-changing” experience studying at the University of Chicago Graduate School of Business, donated $300 million to the school, the largest gift in the university’s history.

“The very first course I took at the University of Chicago was taught by Eugene Fama and it was a life-changing event for me,” Booth said in the statement. “I remember Professor Fama standing up the first day of class and saying `This is the most practical course you will ever take,’ and it turned out to be true. We built Dimensional Fund Advisors around his set of ideas.”

Fama, 69, who has been referred to as the father of modern finance, is best known for his theory that capital markets are so efficient they embody the collective wisdom of all buyers and sellers, according to the university. In 1980, Fama accepted Booth’s invitation to put his theories to work as a member of the management committee of Dimensional Fund Advisors. He thanked Booth today for what he called an incredible gift.


http://www.bloomberg.com/apps/…..8;refer=us

My Bold The collective wisdom of the markets Sheesh!
But what if all the players are addicted to making money? Trusting Cash Junkies with your money is like…well trusting Junkies. Its a bad idea! Speaking of Junkies giving you a Line.
The Chicago School of Economics is being taken care of by Wingnut welfare. From
Dimensional Fund Advisors

http://www.dfaus.com/strategies/performance/

From their own web site all of their funds are loosing money the lowest performing Fund that I could see YTD (year to date) was at a 58.42% loss at its Emerging Market Small Cap fund.
The best fund they had was only down 10.37% that was Global 25/75(I)
I commend then for having relatively up to date numbers but with a loosing fund why attract attention? A $300 million donation to a college attracts lots of attention and hopefully investors. Who if they have Google and some spare time will run to the hills.
Now then you won’t see the Carlyle group making it easy to find their numbers but hey please try.

http://www.carlyle.com/portfol…..m8773.html

Never trust anyone who won’t show you how your money is doing in real time.
In my judgment Carlyle is worse than Dimensional Fund Advisors because they don’t make it as easy to see their funds performance.
You have to wonder what bad news they are hiding.
Now then why would Dimensional Fund Advisors hire anyone from LongTerm Capital Management? In what world does a $3.625 billion bailout of your hedgefund count as a plus on a resume?
In the real world people never get hired for that job again. Unless of course like Bush their Dad arranges a bailout for their business.

The company was founded in 1981 by David G. Booth and Rex Sinquefield, both M.B.A. graduates of the University of Chicago Booth School of Business.

DFA’s objective is to use the insights of Modern Portfolio Theory to produce more efficient investment vehicles. The company’s board of directors includes Myron Scholes and Robert C. Merton, both of whom won the Nobel Prize for economics. The late Merton Miller, another Nobel laureate, was also on the board of directors.


http://en.wikipedia.org/wiki/D…..d_Advisors

my bold What kind of Moron brags about having Myron Scholes and Robert C. Merton on their board of Directors when the economy is in a tailspin?

Goldman Sachs, AIG and Berkshire Hathaway offered then to buy out the fund’s partners for $250 million, to inject $3.75 billion and to operate LTCM within Goldman’s own trading division. The offer was rejected and the same day the Federal Reserve Bank of New York organized a bailout of $3.625 billion by the major creditors to avoid a wider collapse in the financial markets


http://en.wikipedia.org/wiki/L…..Management

The free market had a deal on the table from
Goldman Sachs, AIG and Berkshire Hathaway at what thought was a fair price and trust me nobody else was buying until Greenspan got involved and decided to save them instead but why?
Why didn’t Greenspan trust the market or is Unregulated Capitalism only a myth the GOP feeds the little people?

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