tag:blogger.com,1999:blog-8152901575140311047.post7551239029037944880..comments2024-03-19T05:19:06.448-04:00Comments on Musings on Markets: Chill, dude! It is not the ratings downgrade.. It is how you react to it!Aswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-8152901575140311047.post-58933107525090606292011-12-06T15:16:43.725-05:002011-12-06T15:16:43.725-05:00As businessman I admit that when ratings are down ...As businessman I admit that when ratings are down I feel stress but well sometimes I think that it's better to keep working than don't do nothing.<br /><br /><a href="http://www.pharmacywiki.org/iservepharmacy.html" rel="nofollow">iservepharmacy</a>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-46585421156901905862011-08-15T06:47:44.225-04:002011-08-15T06:47:44.225-04:00Dear Damodaran.
Nice to read you.
I am happy to se...Dear Damodaran.<br />Nice to read you.<br />I am happy to see once more that you , as an intelligent person , changed your deterministic approach.<br /><br />Go back to my old intervention in "We are not ion kansas anymore" criticized by some of your audience and totally disregarded by you.<br /><br />Empirically: everything I written you is now part of your ...approach. <br />Among the rest , your "Buy and (h)old" is inapplicable ( is it so since long time , but seemed not for you)<br /><br />You liquidated my "note " on how complicated is to evaluate Luxury simply ...well I let your audience enjoy your video...<br /><br />Again, next time I shall stop for a coffee in pane & cioccolata..<br /><br />Best to you<br /><br />Waltz LannesWaltz Lanneshttps://www.blogger.com/profile/05256485559185859147noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-46004918150513168612011-08-08T13:17:27.273-04:002011-08-08T13:17:27.273-04:00Prof. Aswath, what are your thoughts on the state ...Prof. Aswath, what are your thoughts on the state of BAC and C. The stocks of these banks have falled much more than the rest of the market. Typically stock prices predict the future, so are we sitting at the next big shock to the markets caused by a significant event involving these banks?FebSee's gabblehttps://www.blogger.com/profile/13082297000740217400noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-39115050894066184262011-08-08T13:07:00.752-04:002011-08-08T13:07:00.752-04:00I think today's foreign market reaction to the...I think today's foreign market reaction to the US treasuries is a slap on the face of S&P, and transmits the message we all already knew: we don't care about your rating, this is still a safe heaven. I don't know why S&P felt the need to do this stupid move. Mostly now, with that huge amount of cash on the bank's BS, which personally I think it's a safety net from the FED, just in case the US can't find enough demand in the markets when they will need to refinance, or there appears something extreme and unpredicted regarding the ability to repay the principals during the next 2 years, which are actually the hardest.Lavhttps://www.blogger.com/profile/06292717246136907039noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-23333305193771960912011-08-08T10:14:59.707-04:002011-08-08T10:14:59.707-04:00Are the rating agencies really a thermometer?
htt...Are the rating agencies really a thermometer?<br /><br />http://economicsofcontempt.blogspot.com/2011/08/on-s-downgrades-and-idiots.htmlMercohttps://www.blogger.com/profile/16274590666334201080noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-74511139354308600922011-08-08T07:42:10.805-04:002011-08-08T07:42:10.805-04:00Does the US rating change affect cost of capital f...Does the US rating change affect cost of capital for companies operating in other countries?Akshayhttps://www.blogger.com/profile/06719633141741038128noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-81992648510217559722011-08-07T12:26:25.714-04:002011-08-07T12:26:25.714-04:00Prof.
Spot on...after the initial brouhaha, the t...Prof. <br />Spot on...after the initial brouhaha, the traders trying to take advantage, imbecile politicians giving their two bit it would be back to normal...(hopefully) <br /><br />What else can investors world over park their money in? <br />Euro - well thats a joke!<br />CHF - Depth / liquidity issues <br />JPY - It's sitting with the Japanese households & they won't let go of it <br />GBP - HoHoHo! <br /><br />So it's going to be back to the greenback!<br />Cheers<br />KrishnanKrishnanhttps://www.blogger.com/profile/01096917726465877552noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-68504890506426787002011-08-07T10:04:52.966-04:002011-08-07T10:04:52.966-04:00I am not saying that there will be no consequences...I am not saying that there will be no consequences but that the downgrade happened in investors' minds over many months. S&P called it on Friday but they are not.umpires.. just commentators. The world goes on.. There may be fewer buyers for treasuries and the T.Bond rate may surge..let's see if it happens.Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-19532000974932277672011-08-07T06:51:33.899-04:002011-08-07T06:51:33.899-04:00Thanks for your post!
And what do you think, is i...Thanks for your post!<br /><br />And what do you think, is it possible that in near future(1 year) USD risk-free rate calculation will be based upon China's borrowing ?<br /><br />Thanks!Frontpagehttps://www.blogger.com/profile/06145912723783646378noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-394137964893439882011-08-07T06:45:34.583-04:002011-08-07T06:45:34.583-04:00This comment has been removed by the author.Frontpagehttps://www.blogger.com/profile/06145912723783646378noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-24972976613049569352011-08-07T04:44:13.330-04:002011-08-07T04:44:13.330-04:00Agree with you on removing the noise. But markets ...Agree with you on removing the noise. But markets are seldom rationale and you would have to be atleast go with the trend till the dust settles.<br /><br />I have a couple of questions<br /><br />1) If its US Sovereign downgrade (not treasury), would the investors still flock to US treasury - thereby making S&P downgrade a laughing stock?<br /><br />2) If not U.S. treasuries, what do you recommend as investment to earn risk free rate considering Gold / commodities do not yield anything? German Bunds? Swiss franc? Yen? Anything else?<br /><br />3) How do you think this effects cascading effect on <br />a) U.S. Banks<br />b) U.S. Businesses<br /><br />Thanks,<br />JJaiminhttps://www.blogger.com/profile/13503062073811285156noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-21741844101657219902011-08-06T22:20:37.907-04:002011-08-06T22:20:37.907-04:00There is no new information in the past few days w...There is no new information in the past few days which may have changed US creditworthiness. However, this is the first time, it has been 'called'. Officially, on paper.<br /><br />This has two implications in my view<br /><br />1) What is truly risk-free? Are all financial instruments inherently risky? And if so, is a return to gold & commodities as true risk free assets the way forward?<br /><br />2) In this year both Japan and the US have been downgraded. Does this mean the 'developed' world as we know it ending, and the new world order of the BRICs and South Korea coming to the fore sooner than expected?Anonymoushttps://www.blogger.com/profile/01517289870592292993noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-59263103103867499992011-08-06T20:26:08.253-04:002011-08-06T20:26:08.253-04:00Trusting S&P to get the cause of the downgrade...Trusting S&P to get the cause of the downgrade right is like asking a thermometer the reason for your feverAswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-21902678873811893642011-08-06T18:59:03.805-04:002011-08-06T18:59:03.805-04:00It's the Tea Party downgrade - from the S&...It's the Tea Party downgrade - from the S&P press release: "Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act."Anonymousnoreply@blogger.com