The big news in the financial world this week has been the uncertainty surrounding the possible American default, and what looked like a really remote possibility feels more likely now. Since this is such a political issue, it’s hard to read anything about this that is not ideologically influenced.
However, I was able to find one such piece written by Professor Aswath Damodaran who does a fantastic job in explaining what is likely to happen if the American debt is downgraded. This is a good read for anyone who wants to understand this issue and learn about what the implications will be.
Closer home, Indian Express reports that Speak Asia’s COO has been arrested along with 3 others.
Shabbir has some thoughts on my post on who should you listen to. He raises an important question about how do you know when people have biases, and who would you rather listen to – someone who is slightly biased as a result of his stock holding, or someone who has no biases at all, but also, no stock positions and hence no skin in the game at all.
I thought about this question myself while going through Sandip Sabharwal’s critique of the RBI Monetary Policy. My first thought was of course you don’t like thisÂ – if my job depended on how the markets performed, and someone’s policies made the market tank – I wouldn’t like that policy either, but then maybe I’m being too harsh, and finding biases where there are none.
It’s a good post, and definitely worth your read.
Hemant does a good job in writing a detailed post about ETFs.
Some good news – Seth Godin has informed me that all of you are celebrities now. Umm, without the money or the fame of course. But seriously, it’s a good post that takes you through some fundamental changes happening in our lives due to the growing influence of social networking.
Finally, for your entertainment – this rap video about raising the debt ceiling. “Calling up China, Yo we straight out of 20’s!” Hilarious!
Enjoy your weekend!