Interesting Fact of the Day
CARPE DIEM
Professor Mark J. Perry's Blog for Economics and Finance
Wednesday, March 07, 2007
About Me
- Name: Mark J. Perry
- Location: Washington, D.C., United States
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
Previous Posts
- The "Tax Hike" of 2003
- Celsius to Fahrenheit
- The Invisible Hand of Wal-Mart
- Impressions of India
- Why Should We Complain About Strong Dollar II?
- Caporale's Law
- Chance of U.S. Recession in 2007 Increases
- Trade Data: US Exports Growing Faster Than Imports
- Who Knew? Absolut Vodka is Goverment-Owned
- Price System Works: Higher Prices Stimulate Supply
3 Comments:
If globalization is creating so much profit for American companies today, why are investments in them so much more riskier than in the past?
Doesn't increased profits translate into less risk and not more?
What am I missing here?
The bond market used to be only available to investment grade firms, and was closed to speculative grade firms. In the 1980s, bond traders like Michael Milkin and firms like Drexel opened up the bond market to small and medium size firms in new industries, like IT, providing new sources of financing to firms like Dell, Intel, Microsoft, Oracle, etc.
Thanks for the information.
It seems like the chart begs for another column and is ambiguous in its present form.
Maybe the amount of dollars invested in bonds adjusted for inflation for the two years should be shown for clarification? If the "pie" got tremendously bigger, then it would be obvious the new investment was probably riskier given the ratio changes between the two years.
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