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With the sub-prime crisis continuing to grip the markets, the most important question is: what stage of the crisis are we in? To answer this question, we take a detailed look at the volume of mortgages at risk of defaulting, and show why we believe the worst is yet to come.
Last week's report showing the GDP increased by 0.6% left many people optimistic the economy may not be in a recession. Economist John Williams does not believe this data, and he explains how reported economic data is manipulated and why we are in a recession that will ultimately lead to hyperinflation.
Paradigm Capital, a leading mutual fund manager, provides the results of their
recent research on the performance of small versus large cap indices during
recent recessions. We welcome them as an
advertiser.
Guest contributor Thomas Tan explains the mechanics of credit default swaps, and how banks are using them to artificially hedge risks and smooth and accelerate earnings. Credit default swaps are at the heart of the sub-prime crisis, and Tan's piece shows how investment banks' reliance on them created market instability.
Our Letters to the Editor contains the latest installment on the subject of whether skillful active managers can be identified in advance.
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