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A look at economics, markets, finance and the irrational human being

A quick macro overview

Economic data is pointing towards a global recession deepening in 2009. The scale of the slowdown in economic activity, the damage done to the banking system, the losses accumulated in residential real estate and the impairment of household balance sheets call for extraordinary policy measures. A more or less global though not entirely concerted policy
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Trading and Investing

You cannot do it solely for the money. If you do, one day it will hurt you so badly you can’t go on. You have to deal the cards as a meditation. It can’t be done for profit, it can’t be done for respect. It’s done to find the answers, to discover the sacred laws
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Relief Rally

In 1997, when the Asian Crisis broke, equities tumbled in a flurry of panic selling. Markets were down between 60 – 70% in the first downdraft. When Asian governments rushed to bailout their banks and corporates the market found its footing and rallied between 50 – 100% as disbelief was converted to relief. All the
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Hedge Fund Redemptions Dec 2008

Hedge funds will face massive redemption requests for 31 December 2008 as investors seek to reduce risk across the board. This is an unprecedented position for the industry. Hedge funds often face liquidity mismatches in that there are positions with longer duration than the redemption intervals offered by these funds to their investors. They can
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September Round Up

The credit crisis that first broke in August 2007 deteriorated very quickly in September 2008. The month was dominated by bank failures and bailouts, a dysfunctional LIBOR market, free falling equity markets, failing credit markets and a general crisis of liquidity. Equities, bonds and commodities all sold off simultaneously as investors sought to reduce risk
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