Friday, August 12, 2011
Welcome to the MBA Show.
Today we’ll unpack what the US credit down-grade means to MBAs.
[you creep up]
Ah! Who are you? How did you get here? This is a closed set. Security.
It’s me guys
Why the disguise?
I’m from over seas and I want to hide my true identity.
Ooh, that doesn’t sound like a good sign.
How do you feel about being an MBA?
I love it! I’m not going to work for the next two years.
Why would would you be embarrassed about that?
Well, I haven’t told my friends I’m an MBA yet.
They’re engineers. Being an MBA is the ultimate sin.
Okay “vaguely international MBA”, what are our headlines for today?
(1) Headlines: US Gov’t Credit Downgrade
As you know Standard & Poor’s recently downgraded the credit rating of the United States government. In case you don’t know, Standard & Poor’s evaluates how risky different forms of debt are. Until recently the US government had (and has always had the highest rating). They are saying that US goverment is now risker than it was last
That’s bullshit! US debt is the safest debt in the world. Down grading it is ridiculous. S&P is just looking for a way to indicate that something has happened, but I think they’re just hurting their own credibility at this point.
GE is AAA rated. Does that mean my money is safer with GE than with the US.
Actually, there is a separate rating for sovereign nations. So you wouldn’t compare the US and GE’s bond rating. You would compare different countries with one another.
For example, it would be interesting, to note all the other countries which currently have a higher debt rating than the United States:
New Zealand! You’re telling me that I’m better off loaning money to Frodo Baggins than I am with the United States.
In my country, Hobbits are considered to be quite trustworthy.
So, Interest rates are about to go up. Althought, if you have fixed rate student-loan debt, then you’re solid.
Who’s going to give me a fixed rate student loans?
Well the US gov’t gives fixed rate loans.
Fantastic. That’s really useful for me. I got all my loans from the mother land.
It’s good. With the us currency about to collapse, or at least downgrade. soon, you’ll be albe to buy an MBA with one month’s salary. Unless we have to political will to fix this, and I think we’ve proven we don’t, the US economy is busted.
The old school US economy is busted. But I’m buying a ticket into the new world of innovation, and for that - an american business education is still the best and still worth it. There is a reason New-Zealand didn’t come up with Apple, Google and Facebook all emerging from the US and not from all the other AAA rated countries, including New-Zealand.
(2) Business Porn
Recent HBS Grad Brian Thorne, and his friends John Lewis, Alex Scott, Ed Foy have created the wildly popular website LeisureDive.com
This is guys taking photos of themselves jumping into pools in poses that look really relaxed and casual.
Four of the worst stereotypes of HBS grads all coming to roost at once.
no redeeming value
Summering in the Hamptons.
If they’re doing this as a joke, then this is great, but if they are deluding themselves into thinking this is a legit business.
I love this! This is one of the first sports where bankers have an edge. Finally an athletic activity where I can participate in business attire.
I hope these guys are self-aware. I’m pretty sure
Give me an example of a leisure dive.
I think it’s better shown with a picture:
One raised elbow
A killer leisure face
An item that indicates leisurely attitude (in your non-raised elbow hand). Some acceptable items include: Red Stripe, White Russian, Paperback novel, Croquet mallet
Miro: Wife’s away
Tom: Scam condo tour for a mythical free cruise.
Stav: I’m writing a business plan.
Posted by Justin Adelson at 10:10 AM