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By Matthias Knab: Man Investments' Research, Analysis and Strategy Group offers on nine pages in its "Review 2008 and Outlook 2009" report a summary of the 2008 events and contrasts the events against all major global market crises, particularly:
- The Great Depression
- 1973-1975 Oil crisis
- 1980-1982 Double dip recession
- 1990-1991 Recession
- The Savings and Loans crisis
- 2001 Recession
Recessions have tended to
get shorter
The review maintains that while there is presently a strong risk of a deep recession which would most likely be
challenging in terms of length and severity. But given the financial firepower and
willingness of governments to learn and intervene in markets, the present economic
environment is arguably unlikely to lead to another Great Depression.
The report also warns that we are still in the early part of the recession. Countries with the biggest
credit booms are most at risk, while emerging economies are also affected.
The authors of the report, Thomas Della Casa, Mark Rechsteiner and Ayako Lehmann, also we believe that "contrary to some commentators, central bankers are not been 'behind the curve' in their policy responses", pointing out that they have aggressively redefined their approach by restoring impaired financial institutions in order to have them provide credit to key entities to overcome a meltdown.
Further ten pages are dedicated to a detailed review of hedge fund performance 2008, and nine pa...................... To view our full article Click here
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