03-25-2009, 05:50 AM
Hello Everybody,
that was a good example by Kamran. I am not sure to what extent it can be true in reality in case of massive business defaults. I am still unable to know whether it is the rumor that causes more damage than the real event or whether the economic situation is in fact so bleak that it is causing these business failures. To be precise this time, I am focusing on US economy.
In my opinion, no businessman will be so gullible to act upon someone's advice like in the example posted by Kamran. Rumors or recessionary fear might trigger fluctuation in the prices of the assets but again i am unsure whether it can surely impact ones judgement to downsize, cease operations in fear of recession knowing his or her business profit is unaffected by any such rumors, economic fluctuations, recessions etc. I hope I am not confusing you all with what Im trying to get across.
i am still unable to start Dr. Kurt discussion because of being tied up in job search, CFA prep etc.
that was a good example by Kamran. I am not sure to what extent it can be true in reality in case of massive business defaults. I am still unable to know whether it is the rumor that causes more damage than the real event or whether the economic situation is in fact so bleak that it is causing these business failures. To be precise this time, I am focusing on US economy.
In my opinion, no businessman will be so gullible to act upon someone's advice like in the example posted by Kamran. Rumors or recessionary fear might trigger fluctuation in the prices of the assets but again i am unsure whether it can surely impact ones judgement to downsize, cease operations in fear of recession knowing his or her business profit is unaffected by any such rumors, economic fluctuations, recessions etc. I hope I am not confusing you all with what Im trying to get across.
i am still unable to start Dr. Kurt discussion because of being tied up in job search, CFA prep etc.