Mandating a floating NAV would make short term financing for American business less efficient and more costly, ensuring a severe setback for an economy emerging from a recession.
If interest rates rise, active fixed-income investors could invest in short-term bonds, which tend to remain fairly stable in rising rate environments, or use floating rate funds, which are more insulated from the negative impact of rising rates.
He cannot resist making sideswipes at business theorists, telling anecdotes that put him in a heroic light and floating impractical radical ideas (such as loyalty premiums on dividends paid to shareholders as an incentive for long-term investment).