General Forum | Forum profile

Quote I am amazed that this thread has evolved to a feast of euro scepticism. I am not ! Quote Which in turn means 1 billion surplus to make principal payments. Its not rocket science. or 1bn to go and fund some politicians pet project ... I think Greece should just put some tax on cigarettes. that will solve a few of their problems.

Quote or 1bn to go and fund some politicians pet project ... Or much worse, to fund some shady gun deal.

Greece will be just fine... Auntie Angela just came out and said so. *MERKEL SAYS EU HAS `COMMON RESPONSIBILITY' FOR GREECE

To be a darling Chancellor of the Exchequer, one needs to be skilled at sophistry, strawmen, and willful ignorance. For a mere 1 basis point of GDP, I'll gladly coach prospective candidates on how to convert blue lollipops into green shoots. P.S. Payment to be made in gold, not gilts. Thank you!

It's a funny question. If that was possible they could: Sell all their assets in EUR and buy assets in JPY, USD, CHF, AUD + Gold, Oil... Keep all their debt in EUR Choose a fx rate of 1EUR = 0GDR Hence, becoming external debt free If we work out the cross rate we would get "one time" "fiat" fx rates of: 1 GDR = +00 EUR 1 GDR = +00 USD and we get an indetermination in the cross rates or would the "market"...

reading assignment: END THE FED By Ron Paul Hardcover: 224 pages Publisher: Grand Central Publishing (September 16, 2009) Language: English ISBN-10: 0446549193 ISBN-13: 978-0446549196

Quote Originally posted by: freddiemac Quote My question, however, relates to why short term financing can lower the WACC (and not just the fraction of the capital structure that consists of short term debt). WACC dont distinct btw short and long financing - debt is just debt. it think to remember the assumption that you can issue equity at any time(!). thus wacc like debt never(!) defaults. as the firm survive forever(!), maturity doesnt...

The phenomenon that the vol rises before earnings perfectly makes sense to me because the announcement will either cause the price to jump up or down. Still, I dont see why the implied vol should increase if the price of a stock dropped 1%. I do understand the de-leveraging argument for 50% drops, but what about the small drops we encounter often of 0.5-2%, but shouldn't it be a symmetrical effect? And still, why wouldn't an steady...

Quote WACC dont distinct btw short and long financing - debt is just debt. That would then imply that short and long term debt has the same cost, right? I think you are right that WACC as seen in a normal textbook does not distinguish between short and long-term debt. However, I think this is just a matter of presentation and the WACC concept can be expanded to include different maturities just like there is normally only debt and equity (ie...

Quote Originally posted by: gc To me blackvol(K)*forward doesn't mean much really... The moment they trade a smile they are outside this framework and I don't think that the break-even makes much sense anymore. Rebonato in his "Volatility and correlation" shows for example that to hedge an OTM option calculating the delta on the implied volatility at the strike performs worse than using the ATM volatility. Thanks for your...