Making money on the thinking of Nouriel Roubini isnâ€™t what it used to be. The New York University professor, who in 2006 foretold the worst financial unraveling since the Great Depression, has yet to say the economy is worth investing in again. â€œThere is a big risk of a double-dip recession,â€ wrote Roubini, also known as Dr. Doom, in his column in the Financial Times this week.
As a corporate finance manager planning inventories and projected cash flows for the last quarter of the year, how would you interpret this economic information in terms of future financial impact on your firm?
Would you increase or decrease your inventory levels if you were an electronics firm such as Samsung or Sony?
Would you be optimistic or pessimistic about sales this coming holiday shopping season if you were working at Best Buy?
Which businesses do you think should be more aggressive in stocking their inventories and which should be more conservative? Explain your thinking.
Charles Schumer, the third-ranking Democrat in the U.S. Senate, asked the Securities and Exchange Commission to ban so-called flash orders for stocks, saying they give high-speed traders an unfair advantage.
Ericsson AB, the worldâ€™s largest maker of wireless phone networks, will buy the wireless equipment unit of insolvent Nortel Networks Corp. for $1.13 billion after beating bids from Nokia Siemens Networks and MatlinPatterson Global Advisers LLC.