Friday, February 18, 2011
German Rival Buys New York Stock Exchange
For grade on 25 Feb 2011. What are the implications of a German Company owning the NYSE?
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Welcome. This is a blog dedicated to the students enrolled in the CSHS AP Economics classes. Click on the title of the article, read, and click comment.
Obviously, this is German World War III success plan.
ReplyDeleteStep 1: Start World War II
Step 2: Lose and make America rebuild
Step 3: Buy NYSE
Step 4: ?????????
Step 5: World Domination and Infinite Profitz
Some implications of a German company owning the NYSE is that our national pride will be affected and our country could lose a lot of power. Like the article said, the NYSE is part of our nation's history. Furthermore, since September 2001, it has been a patriotic symbol. Having a foreign country come in and take this symbol would hurt the country's pride and reputation. Moreover, our country is already in poor shape due to the recession, having Germany come in to take over the stock exchange might not benefit us.
ReplyDeleteI don't believe NYSE should be on sale to foreign companies. It is somewhat disheartening to know that the New York Stock Exchange is no longer even American. The controversy over illegal immigrants working in America and the large-scale migration of American manufacturing into foreign countries is not even on scale to this: A foreign company buying a large part of the American financial market.
ReplyDeleteI must concur with John, well said! The sale of the NYSE to Germany puts a main thought into my head, why would we sell it? It's a huge part in our financial system, and, as said above, is an American landmark. In the long-run I believe it's going to hurt us, since it plays a role in our lives and is now ran by the Germans.
ReplyDeleteClearly, I am completely clueless. It is news to me that the NYSE could even be bought (let alone by a foreign country). The reprecussions of this come mainly in the form of damage to American confidence and pride. As said above by a few people, the stock exchange is very much an American landmark and symbol of the American capitalist spirit. Furthermore, it seems like it would damage consumer confidence to know that their stock exchange can be sold and that it is no longer in American control.
ReplyDeleteWith a German company owning a portion of the NYSE could reduce consumer confidence or a persons willingness to invest in the market. Americans are often more likely to purchase vehicles from Chevrolet or Ford because they are "American owned." The public may begin to feel similar emotions when it comes to stocks markets.
ReplyDeleteEver since September 11, NYSE has become a patriotic symbol. To have Germans owning 60% of NYSE would be a blow to the people's pride and the country's reputation. Even though Germany can bail us out of the recession, it might not benefit us in the long-run. This could discourage possible investors or people who wants to invest in the stock market because it is nit fully "American" anymore.
ReplyDeleteIf Germans own the NYSE we are asking for trouble. Gernman owning something so important to our nation's history and valuable to so many households will make us more vulnerable to anything they decided to pull. And I agree with Katie, I was totally unaware that the NYSE could even be bought... P.S. who is John cause that's not McEwan.. atleast I don't think it is..
ReplyDeleteOne example would be that if the German economy were to fail; the NYSE (or whatever it would be called from now on), would not fare financially well. Also, just as the article dictated, the NYSE is an American icon that signifies national pride, and without it, national mentality might be weakened.
ReplyDeleteIt is very distressing to become aware of the fact that any foerign company could own the NYSE. This obviously has negative implications since American pride and confidence will surely be damaged. Also, many citizens of the United States will become more wary in investing in the stock market since Germany will be controlling an integral facet of our financial system.
ReplyDeleteLetting a foreign country, Germany, own NYSE will definitely bring on many implications. Our nation's pride would be hurt and damaged because NYSE has been such a big part of this country. Also, there would be less Americans buying stocks because they do not trust in the foreign owned stock market anymore.
ReplyDeleteWith Germany buying the NYSE, American pride is at stake. The NYSE has always been associated with the US only. Now that Germany will own 60% of it, the NYSE can no longer maintain its status as an American icon. Even though Niederauer points out that the NYSE is a global company, Americans don't really realize or think that. Also, it may be dangerous for the US to be tied so closely to Germany through the NYSE. If the two countries ever engage in war again, the NYSE will be in a complicated situation.
ReplyDeleteGermany buying NYSE will cause American's to lose confidence in their economy. It will cause them to not invest in the market as much because they don't trust it anymore since it is not in American hands. NYSE has been an American icon for years now, and if a large portion of it were to be turned over to German hands it will no longer hold that position and will cause people to stop using it.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThe implications of a foreign owner of the NYSE can be huge. For example if i were an owner of the NYSE and i did something illegal on the trading floor like fudge the numbers a little for my friends company then i would be arrested (theoretically). The SEC would march over to my house arrest me after getting whatever info they need to convict me from the NYSE servers or whatever. Now what happens when we have a German running and owning the NYSE then we cannot go over to germany and arrest people, we dont have any jurisdiction. Not only that but if the German government were to seize the property of the owner of the NYSE they could effectively shut it down causing a mass panic in the united states.
ReplyDeletethe implications of Germany buying 60% of the NYSE is most likely going to be a negative one. the NYSE is a national landmark and the fact that such a large American landmark is no longer American anymore is very disheartening. it will definitely deal a blow to our pride and will have long term negative consequences.
ReplyDeleteAs stated by everyone else, the sale of the NYSE would completely shatter American morale. It is a symbol of our country's economic power and selling it is like selling our confidence and self-respect. Consumers will feel less compelled to invest and overall, a large component of American money will belong to Germany. At the current state of our country, this most definitely seems like a bad idea.
ReplyDeleteOkay so I'm hoping we are all misunderstood here and the NYSE can't be bought, Germany is just going to own a huge portion of the stocks? I don't really understand what they mean by Germany buying it. Regardless, it will have negative consequences such as a reduction in consumer confidence, a reduction in our economic power, and we are losing control of one of the most historic and influential economic creations ever. I would hate to see the NYSE not be an American entity, and I would be scared they would change it to German money which I believe is not as stable as our currency. It will also be very difficult to manage stocks that aren't controlled by our nations companies. Lets just hope they don't convert everything to the German language or have a financial crisis.
ReplyDeleteAlthough it may have its short term benefits, German ownership of the NYSE would put us at a long run disadvantage. Not only does it hurt American pride, it hurts consumer confidence. It also hurts our country's reputation as a whole.
ReplyDelete