[FuzX]

I say everyone here is wrong. As time passes, languages change, and their grammar changes. And adding to the fact that English is regulated by no country, no one is really right. While it's possible that "Rachel's funny" could have not been acceptable grammar centuries ago, It is very frequently used in modern times, and perfectly acceptable grammar.

Furthermore, when saying "Rachel's going to be late," the average English speaker would understand it as "Rachel is going to be late," and almost never be conscious of the possibility of it meaning something possesive.

I would like to see a website that says that a name followed by a 's is always possesive.