Comments on: Financial Crisis vs. Economic Crisis http://www.obliviousinvestor.com/financial-crisis-vs-economic-crisis/ Investing Blog: The Oblivious Investor Tue, 07 Feb 2012 17:04:11 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Thadeus http://www.obliviousinvestor.com/financial-crisis-vs-economic-crisis/comment-page-1/#comment-193 Thadeus Wed, 21 Jan 2009 11:14:13 +0000 http://www.obliviousinvestor.com/?p=23#comment-193 It is hard to precisely measure the effect of the financial crises on the economy.It is however evident that when financial markets are adversely affected,this in turn will affect the economy(not necessarilly cause a crisis).Companies are not spared.For example,a co. may forgo a viable investment opportunity due to difficulties in accessing capital.The stock market has greatly shade off in value,this means companies may not consider floating their shares in the stock market.Secondary issues,rights issues etc may not work well in a bearish market.Companies are left with few options like corporate bonds(rates may also be high especially for co's with poor credit rating)and syndicated loans.People therefore have something to worry about, but all is not gone.This is just a case of history repeating itself. It is hard to precisely measure the effect of the financial crises on the economy.It is however evident that when financial markets are adversely affected,this in turn will affect the economy(not necessarilly cause a crisis).Companies are not spared.For example,a co. may forgo a viable investment opportunity due to difficulties in accessing capital.The stock market has greatly shade off in value,this means companies may not consider floating their shares in the stock market.Secondary issues,rights issues etc may not work well in a bearish market.Companies are left with few options like corporate bonds(rates may also be high especially for co’s with poor credit rating)and syndicated loans.People therefore have something to worry about, but all is not gone.This is just a case of history repeating itself.

]]> By: Mike http://www.obliviousinvestor.com/financial-crisis-vs-economic-crisis/comment-page-1/#comment-150 Mike Fri, 02 Jan 2009 14:42:12 +0000 http://www.obliviousinvestor.com/?p=23#comment-150 Hi Argy. If you read some of my recent posts, you'll see that I'd take issue with the assessment that our economy is in crisis. Yes, we're in a recession. And yes, things are worse than they've been in years. But <i>crisis</i>, as in "our economy will entirely collapse if we don't do ____"? It doesn't look that bad to me. (Granted, I could be entirely wrong.) Hi Argy.

If you read some of my recent posts, you’ll see that I’d take issue with the assessment that our economy is in crisis.

Yes, we’re in a recession. And yes, things are worse than they’ve been in years. But crisis, as in “our economy will entirely collapse if we don’t do ____”? It doesn’t look that bad to me. (Granted, I could be entirely wrong.)

]]> By: misanthropope http://www.obliviousinvestor.com/financial-crisis-vs-economic-crisis/comment-page-1/#comment-124 misanthropope Wed, 10 Dec 2008 08:15:43 +0000 http://www.obliviousinvestor.com/?p=23#comment-124 i think that you missed an important point. yes, the crisis originated in the financial markets and not the "real" economy, but generally the term "financial markets" is used to refer to the STOCK market. this crisis originated in the _credit_ market, which is considerably larger and much more significant to the real economy than the stock market. i think that you missed an important point. yes, the crisis originated in the financial markets and not the “real” economy, but generally the term “financial markets” is used to refer to the STOCK market.

this crisis originated in the _credit_ market, which is considerably larger and much more significant to the real economy than the stock market.

]]> By: Argy http://www.obliviousinvestor.com/financial-crisis-vs-economic-crisis/comment-page-1/#comment-116 Argy Mon, 08 Dec 2008 20:54:33 +0000 http://www.obliviousinvestor.com/?p=23#comment-116 I would be interesting to see a follow-up on this post now that the real economy is in crisis I would be interesting to see a follow-up on this post now that the real economy is in crisis

]]> By: Ellie Behling http://www.obliviousinvestor.com/financial-crisis-vs-economic-crisis/comment-page-1/#comment-9 Ellie Behling Fri, 31 Oct 2008 02:45:08 +0000 http://www.obliviousinvestor.com/?p=23#comment-9 I really did love this post, and am so glad I stumbled across your site through Tip'd. Please keep up the good work. I really did love this post, and am so glad I stumbled across your site through Tip’d. Please keep up the good work.

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