An amusing rant from a humanities professor who seems to have an axe to grind with B-Schools and Finance Profs in particular . Whenever you read an article in which the market is referred to in quotes, as in: "the market", you know that what follows is going to be a complete failure to understand the basics of supply and demand.
To avoid regulation. Apparently, universities are increasingly issuing taxable bonds (where the bond buyer has to pay taxes on the interest) in order to get greater flexibility in where those funds can be used . In effect, the borrowers are paying more interest to avoid covenants imposed the federal government.
Check out this new online journal/magazine that reproduces summaries of top finance research targeted at a broader audience. This is an excellent idea and the first two issues contain some really good papers. http://fame-jagazine.com/ It comes at a time w hen some people are questioning whether academic research in business is a positive NPV project.