All papers examples
Get a Free E-Book!
Log in
HIRE A WRITER!
Paper Types
Disciplines
Get a Free E-Book! ($50 Value)

Matt Wirz’s Article, Essay Example

Pages: 2

Words: 420

Essay

Matt Wirz’s article, “Debt Investors Aren’t Just Waiting For the Next Downgrades in Europe” from the September 19th, 1012 edition of the Wall Street Journal Online probes the connection between an impending credit downgrades for Spain and Italy by Moody’s Investors Service Inc. and the status of global debt and investment opportunities associated with international debt-trading.   The article concentrates on bond-trading and on the early reactions of investors to a possible credit downgrading.

The article also explores how the downgrading of a nation’s credit rating influences the values of its bonds,and , in turn, the value of companies associated with that nation. For example, Wirz reports that certain “investors take issue with Moody’s policy, arguing that it forces them to sell out of even strong companies with limited exposure to their governments” (Wirz).

This point is very important in regard to doing business in a global environment. The Telefonica company is referenced near the end of the article as a company who may see tremendous loss with a potential credit downgrade of Spain, despite having only slightly over a third of its assets in that nation.

I feel that the article is important in regard to global business because it highlights the tenuous and complex nature of how international debt and trade interact. It also shows that opportunities exist even in economic downturns. I also think that the article shows how specific events in global business create a “ripple” effect that goes through the entire system.

One of the most obvious impact of the looming credit downgrade fro Italy and Spain is that “junk” bonds will proliferate in the countries. Also, a decrease in previously held bonds will occur. Money will shift in and out of the these downgraded markets as some try to create wealth by buying cheap bonds and others sell off in fear. The beginning of this ripple impact was described in the article, as previously mentioned.

I chose to share this article because I think it is very important to consider the double-edeged sword of living in a global economy. On the one hand,the opportunities that are afforded by a global economy are tremendous. On the other hand, the regulation of such a complicated

economy is a delicate business. The article shows the inner-workings of business on a global scale because it deals directly with the value of currency and International finance in  a way that ultimately connects to all businesses in the world.

Reference

Wirz, Matt. Debt Investors Aren’t Just Waiting For the Next Downgrades in Europe. WSJ Online; 9-19-2012; accessed 9-19-12; http://online.wsj.com/article/SB10000872396390443890304578006702026974538.html?mod=WSJ_hp_LEFTWhatsNewsCollection

Time is precious

Time is precious

don’t waste it!

Get instant essay
writing help!
Get instant essay writing help!
Plagiarism-free guarantee

Plagiarism-free
guarantee

Privacy guarantee

Privacy
guarantee

Secure checkout

Secure
checkout

Money back guarantee

Money back
guarantee

Related Essay Samples & Examples

Voting as a Civic Responsibility, Essay Example

Voting is a process whereby individuals, such as an electorate or gathering, come together to make a choice or convey an opinion, typically after debates, [...]

Pages: 1

Words: 287

Essay

Utilitarianism and Its Applications, Essay Example

Maxim: Whenever I choose between two options, regardless of the consequences, I always choose the option that gives me the most pleasure. Universal Law: Whenever [...]

Pages: 1

Words: 356

Essay

The Age-Related Changes of the Older Person, Essay Example

Compare and contrast the age-related changes of the older person you interviewed and assessed with those identified in this week’s reading assignment. John’s age-related changes [...]

Pages: 2

Words: 448

Essay

The Problems ESOL Teachers Face, Essay Example

Overview The current learning and teaching era stresses globalization; thus, elementary educators must adopt and incorporate multiculturalism and diversity in their learning plans. It is [...]

Pages: 8

Words: 2293

Essay

Should English Be the Primary Language? Essay Example

Research Question: Should English be the Primary Language of Instruction in Schools Worldwide? Work Thesis: English should be adopted as the primary language of instruction [...]

Pages: 4

Words: 999

Essay

The Term “Social Construction of Reality”, Essay Example

The film explores the idea that the reality we experience is not solely determined by objective facts but is also shaped by the social and [...]

Pages: 1

Words: 371

Essay

Voting as a Civic Responsibility, Essay Example

Voting is a process whereby individuals, such as an electorate or gathering, come together to make a choice or convey an opinion, typically after debates, [...]

Pages: 1

Words: 287

Essay

Utilitarianism and Its Applications, Essay Example

Maxim: Whenever I choose between two options, regardless of the consequences, I always choose the option that gives me the most pleasure. Universal Law: Whenever [...]

Pages: 1

Words: 356

Essay

The Age-Related Changes of the Older Person, Essay Example

Compare and contrast the age-related changes of the older person you interviewed and assessed with those identified in this week’s reading assignment. John’s age-related changes [...]

Pages: 2

Words: 448

Essay

The Problems ESOL Teachers Face, Essay Example

Overview The current learning and teaching era stresses globalization; thus, elementary educators must adopt and incorporate multiculturalism and diversity in their learning plans. It is [...]

Pages: 8

Words: 2293

Essay

Should English Be the Primary Language? Essay Example

Research Question: Should English be the Primary Language of Instruction in Schools Worldwide? Work Thesis: English should be adopted as the primary language of instruction [...]

Pages: 4

Words: 999

Essay

The Term “Social Construction of Reality”, Essay Example

The film explores the idea that the reality we experience is not solely determined by objective facts but is also shaped by the social and [...]

Pages: 1

Words: 371

Essay