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<channel>
	<title>the rational post &#187; leverage</title>
	<atom:link href="http://www.freedom24.org/rationalpost/tag/leverage/feed/" rel="self" type="application/rss+xml" />
	<link>http://www.freedom24.org/rationalpost</link>
	<description>a collection of essays and articles on the science of everyday life</description>
	<lastBuildDate>Tue, 10 Jan 2012 03:19:04 +0000</lastBuildDate>
	<language>en</language>
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		<item>
		<title>the spanish prisoner</title>
		<link>http://www.freedom24.org/rationalpost/2010/02/11/the-spanish-prisoner/</link>
		<comments>http://www.freedom24.org/rationalpost/2010/02/11/the-spanish-prisoner/#comments</comments>
		<pubDate>Thu, 11 Feb 2010 06:03:49 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[world affairs]]></category>
		<category><![CDATA[capitalism]]></category>
		<category><![CDATA[crisis]]></category>
		<category><![CDATA[europe]]></category>
		<category><![CDATA[leadership]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[macroeconomics]]></category>
		<category><![CDATA[policy]]></category>
		<category><![CDATA[regulation]]></category>
		<category><![CDATA[speculation]]></category>
		<category><![CDATA[unemployment]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/?p=2018</guid>
		<description><![CDATA[&#8220;Zapatero is not a good driver. It&#8217;s like a boat, which in calm waters steers fine, but when it gets bumpy, they are not prepared.&#8221; The same could be said for many of the world&#8217;s C-level leaders, so it&#8217;s perhaps not surprising that both companies and countries are finding out the hard way that credit can dry up when the sea gets choppy&#8230;
Not a bull in sight as the bears go after Spain
From the nosebleed seats of the E.U., government cries out &#8216;We are not Greece&#8217;
By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) &#8212; Eduardo Fernandez Agudo is old enough to have lived through other economic crisis in Spain, but the current one has him worried enough.
&#8220;We are in a very difficult time. For ...]]></description>
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		</item>
		<item>
		<title>trouble on the homefront?</title>
		<link>http://www.freedom24.org/rationalpost/2009/12/18/household-finances-governor-carney/</link>
		<comments>http://www.freedom24.org/rationalpost/2009/12/18/household-finances-governor-carney/#comments</comments>
		<pubDate>Fri, 18 Dec 2009 12:31:13 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[behavior]]></category>
		<category><![CDATA[behavioral]]></category>
		<category><![CDATA[canada]]></category>
		<category><![CDATA[consumption]]></category>
		<category><![CDATA[fin]]></category>
		<category><![CDATA[households]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[macroeconomics]]></category>
		<category><![CDATA[real esate]]></category>
		<category><![CDATA[saving]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/?p=1861</guid>
		<description><![CDATA[As rare proof that not all ex-Goldman bankers are great vampire squids wrapped around the face of humanity, Bank of Canada Governor Mark Carney turns his gaze toward households as the holidays approach with some keen macro observations and their implications for micro decision-making. Though the central bank recently raised flags about Canadian household finances and talk of a real estate bubble has begun to resurface, this public address seems measured both in its observations and its conclusions, and reflects well on the current poster child of responsible 21st century monetary governance&#8230; 
Remarks by Mark Carney, Governor of the Bank of Canada
at The National Forum (Canadian Club of Toronto and Empire Club of Canada)
16 December 2009
Download the entire document in ...]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>financial crisis for beginners</title>
		<link>http://www.freedom24.org/rationalpost/2009/12/15/financial-crisis-for-beginners/</link>
		<comments>http://www.freedom24.org/rationalpost/2009/12/15/financial-crisis-for-beginners/#comments</comments>
		<pubDate>Tue, 15 Dec 2009 07:03:47 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[banking system]]></category>
		<category><![CDATA[CDS]]></category>
		<category><![CDATA[federal reserve]]></category>
		<category><![CDATA[japan]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[macroeconomics]]></category>
		<category><![CDATA[policy]]></category>
		<category><![CDATA[primer]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/?p=1712</guid>
		<description><![CDATA[Commentators often question how recent events in global capital markets could possibly sneak up on the world&#8217;s leading economists and policymakers. One possible explanation begins with the premise that the average citizen is reasonably unaware of even the most basic financial and economic concepts – like fractional reserve banking and the time value of money. As a result, generations of otherwise sophisticated individuals have grown up trusting that our economic plumbing and the individuals who manage it are fundamentally sound.

From the sophisticated supply chain that furnishes your morning cup of Ethiopian dark roast to the number of travel miles it takes to fly home for the holidays, the financial system reaches seamlessly into virtually every part of our life. It ...]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>originative sin</title>
		<link>http://www.freedom24.org/rationalpost/2009/01/09/originative-sin/</link>
		<comments>http://www.freedom24.org/rationalpost/2009/01/09/originative-sin/#comments</comments>
		<pubDate>Fri, 09 Jan 2009 21:25:25 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[history & society]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[banking]]></category>
		<category><![CDATA[compensation]]></category>
		<category><![CDATA[history]]></category>
		<category><![CDATA[incentives]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[speculation]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/?p=486</guid>
		<description><![CDATA[The latest in a long series of articles on the Rational Post sharing a common refrain: those who forget economic history are condemned to repeat it&#8230;
Originative sin: the future of banking
By John Plender at FT.com, January 4 2009
For the late John Kenneth Galbraith, an acute observer of market folly, finance and innovation were fundamentally incompatible. Every new financial instrument, he said, “is, without exception, a small variation on an established design, one that owes its distinctive character to the &#8230; brevity of financial memory”. The world of finance “hails the invention of the wheel over and over again, often in a slightly more unstable version”.
After the devastating collapse of a credit bubble that had seen explosive growth in new financial ...]]></description>
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		</item>
		<item>
		<title>princely finance</title>
		<link>http://www.freedom24.org/rationalpost/2009/01/02/princely-finance/</link>
		<comments>http://www.freedom24.org/rationalpost/2009/01/02/princely-finance/#comments</comments>
		<pubDate>Fri, 02 Jan 2009 20:44:05 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[finance & economics]]></category>
		<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[history & society]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[banking system]]></category>
		<category><![CDATA[failures]]></category>
		<category><![CDATA[fiscal policy]]></category>
		<category><![CDATA[history]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[monetary policy]]></category>
		<category><![CDATA[regulation]]></category>
		<category><![CDATA[taxes]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/?p=464</guid>
		<description><![CDATA[This brief history of regal extortion draws some parallels to today&#8217;s &#8220;sinister&#8221; Federal Reserve, though the links are less tenuous than Dr. Hoye and others often suggest&#8230;
PRINCELY FINANCE AND TAXATION
Bob Hoye, INSTITUTIONAL  ADVISORS
With a degree in geophysics and a number of fascinating summers in mining exploration, one winter in “the bush” quickly led Bob into the financial markets. This included experience on the trading desk and in the research department of a large investment dealer, which led to institutional stock and bond sales.
Bob’s review of financial history provided the forecasting models designed to anticipate significant trend reversals in the sometimes alarming volatility typical of the transition from rampant speculation in tangible assets to fabulous speculation in financial assets.
One would ...]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>bucket shops</title>
		<link>http://www.freedom24.org/rationalpost/2008/12/07/bucket-shops/</link>
		<comments>http://www.freedom24.org/rationalpost/2008/12/07/bucket-shops/#comments</comments>
		<pubDate>Sun, 07 Dec 2008 18:55:46 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[history & society]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[financial markets]]></category>
		<category><![CDATA[great depression]]></category>
		<category><![CDATA[history]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[speculation]]></category>
		<category><![CDATA[video]]></category>
		<category><![CDATA[wall street]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/?p=442</guid>
		<description><![CDATA[Over-the-counter gambling on the markets has been around much longer than modern derivatives pundits would have you believe. The New York Times was warning against &#8220;casino capitalism&#8221; as early as 1905, when side bets on market movements were both commonplace and unregulated, and won the attention of an American government still swaggering after its victory over the mega-trust companies of the late 19th century. The following 60 Minutes segment discusses both the nature of CDS instruments and how they&#8217;ve become just as dangerous today as they were in the &#8220;bucket rooms&#8221; or gambling houses of the 1920s&#8230;


]]></description>
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		</item>
		<item>
		<title>oh canada</title>
		<link>http://www.freedom24.org/rationalpost/2008/11/13/oh-canada/</link>
		<comments>http://www.freedom24.org/rationalpost/2008/11/13/oh-canada/#comments</comments>
		<pubDate>Fri, 14 Nov 2008 00:36:38 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[in other words]]></category>
		<category><![CDATA[banking system]]></category>
		<category><![CDATA[canada]]></category>
		<category><![CDATA[finance]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[regulation]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/?p=396</guid>
		<description><![CDATA[Currently the envy of Hank Paulson and virtually every Finance Minister around the globe, Jim Flaherty describes how the world&#8217;s leading middle-power managed to side-step most of the financial devastation that&#8217;s haunting global financial markets, and what the world can learn from its sure-footed path&#8230;

&#8220;Boring&#8221; Canada&#8217;s Financial Tips for the World
The following guest column by the Honourable Jim Flaherty, Minister of Finance, appeared in today’s Financial Times. In it, Minister Flaherty outlines Canada’s five-point plan to restore stability to the international financial system.
&#8220;The financial crisis that began 14 months ago in the US has intensified and spread around the world, threatening to roll back economic progress that has been made over the past two decades. Governments have been responding in ...]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>speakerphone diplomacy</title>
		<link>http://www.freedom24.org/rationalpost/2008/04/02/speakerphone-diplomacy/</link>
		<comments>http://www.freedom24.org/rationalpost/2008/04/02/speakerphone-diplomacy/#comments</comments>
		<pubDate>Wed, 02 Apr 2008 21:56:07 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[bailout]]></category>
		<category><![CDATA[banking system]]></category>
		<category><![CDATA[Bear Stearns]]></category>
		<category><![CDATA[collapse]]></category>
		<category><![CDATA[contagion]]></category>
		<category><![CDATA[credit crisis]]></category>
		<category><![CDATA[diplomacy]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[money supply]]></category>
		<category><![CDATA[systemic]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/?p=239</guid>
		<description><![CDATA[We&#8217;ll probably never know how close we came to systemic financial collapse this March, but if anyone had any idea about the scale and scope of the global credit crisis, it was this ragtag collection of Wall Street rainmakers who gathered by phone last Sunday to rescue the world&#8230;
Leveraged Planet
By Andrew Ross Sorkin
Just after JPMorgan Chase announced its initial $2-a-share deal to buy Bear Stearns, government officials held an extraordinary impromptu conference call. The participants on the Sunday night call, who got a preview of the deal, were Wall Street&#8217;s biggest power brokers: Lloyd Blankfein of Goldman Sachs dialed in from home. John Mack of Morgan Stanley rushed to the office to listen on speakerphone. Richard Fuld of Lehman Brothers, ...]]></description>
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		<slash:comments>0</slash:comments>
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		<item>
		<title>factors of destruction</title>
		<link>http://www.freedom24.org/rationalpost/2008/01/16/factors-of-destruction/</link>
		<comments>http://www.freedom24.org/rationalpost/2008/01/16/factors-of-destruction/#comments</comments>
		<pubDate>Wed, 16 Jan 2008 20:31:20 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[history & society]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[world affairs]]></category>
		<category><![CDATA[consumption]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[macroeconomics]]></category>
		<category><![CDATA[statistics]]></category>
		<category><![CDATA[theory]]></category>
		<category><![CDATA[trade]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/2008/01/16/factors-of-destruction/</guid>
		<description><![CDATA[In this recent Times OpEd, Rochester economics professor Steve Landsburg points out how easily John Q. Public overlooks cause and effect in 21st century markets. 
Let&#8217;s review: 1) goods and services require labor and capital to produce; 2) the price of labor and capital impact an item&#8217;s ultimate price; 3) factors of production are much less expensive in the developing world; 4) a decades-long public war on inflation in the developed world has prevented the price of goods from increasing in step with wages; however, 5) wage growth is now slowing and inflation has reached a 17-year high; thus 6) in their quest to find the lowest price, consumers who rebel against off-shoring jobs are simply biting the hand that ...]]></description>
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		<slash:comments>0</slash:comments>
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		<item>
		<title>the price of liberty</title>
		<link>http://www.freedom24.org/rationalpost/2007/06/04/the-price-of-liberty/</link>
		<comments>http://www.freedom24.org/rationalpost/2007/06/04/the-price-of-liberty/#comments</comments>
		<pubDate>Mon, 04 Jun 2007 15:03:07 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[world affairs]]></category>
		<category><![CDATA[balance of payments]]></category>
		<category><![CDATA[finance]]></category>
		<category><![CDATA[fiscal]]></category>
		<category><![CDATA[flow of funds]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[stimulus]]></category>
		<category><![CDATA[taxation]]></category>
		<category><![CDATA[trade]]></category>
		<category><![CDATA[war]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/2007/06/04/the-price-of-liberty/</guid>
		<description><![CDATA[Spending taxpayers money on a massive military offensive has its own unique economic consequences, but borrowing money from abroad to finance sustained hostilities half-way around the world places the American executive in a vulnerable position vis-a-vis the international community. This moderated conversation, featuring Robert Hormats &#8212; currently Vice Chairman at Goldman Sachs International and a former Assistant Secretary of State, member of the National Security Council, and US Trade Ambassador &#8212; touches on the myriad economic and political challenges that emerge when war is funded by outsiders while policy projects from within&#8230;
The Price of Liberty:  Paying For America&#8217;s Wars
Council on Foreign Relations, Washington, DC
May 16, 2007
KORB:  Let me talk about this important book.  Now, when I read ...]]></description>
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		<slash:comments>0</slash:comments>
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		<item>
		<title>all that glitters</title>
		<link>http://www.freedom24.org/rationalpost/2006/11/23/all-that-glitters-2/</link>
		<comments>http://www.freedom24.org/rationalpost/2006/11/23/all-that-glitters-2/#comments</comments>
		<pubDate>Thu, 23 Nov 2006 04:32:48 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[bubble]]></category>
		<category><![CDATA[history]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[macroeconomics]]></category>
		<category><![CDATA[real estate]]></category>
		<category><![CDATA[regulation]]></category>
		<category><![CDATA[speculation]]></category>
		<category><![CDATA[statistics]]></category>
		<category><![CDATA[theory]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/2006/11/23/all-that-glitters/</guid>
		<description><![CDATA[November 23, 2006—More dour news about the coming financial apocalypse, this time by noted economic strategist Dr. Gary Shilling. The augur, once again, is a hyper-inflated housing market, driven principally by excessive leverage, scandalous consumer spending, and inexhaustible financial optimism. &#8220;And why not?&#8221; you might ask. Everyone and their uncle has made money in real estate over the past five years, from the slummiest crack house to the most decadent penthouse. The more money everyone has, the more money everyone spends, and most developed economies have profited handsomely from that arrangement.
To get a sense of why the experts are now tempering such myopic enthusiasm, and why these so-called &#8220;speculative episodes&#8221; are inherently not in the economy&#8217;s best interests, read some ...]]></description>
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		<slash:comments>0</slash:comments>
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		<title>serenity now</title>
		<link>http://www.freedom24.org/rationalpost/2006/09/06/serenity-now/</link>
		<comments>http://www.freedom24.org/rationalpost/2006/09/06/serenity-now/#comments</comments>
		<pubDate>Thu, 07 Sep 2006 02:31:00 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[bubble]]></category>
		<category><![CDATA[china]]></category>
		<category><![CDATA[consumption]]></category>
		<category><![CDATA[contagion]]></category>
		<category><![CDATA[development]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[panic]]></category>
		<category><![CDATA[speculation]]></category>
		<category><![CDATA[trade]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/2006/09/06/serenity-now/</guid>
		<description><![CDATA[Morgan Stanley&#8217;s chief global economist adds his voice to the growing choir of doomsayers, predicting heartbreak for employees and consumers throughout the high-cost, developed world. His thesis is simple: growth in the world economy has come not from soaring wages but from bubbalicious home prices, soaring corporate profits, American consumerism  and low-cost third-world labour. As jobs continue to stream offshore and the markets pray for a &#8220;soft landing&#8221;, recession may be the only tune this chorus is willing to sing&#8230;
Global Growth Paradox
by Stephen S. Roach
The global labour arbitrage tilts returns to labour away from the high-wage industrial world toward the low-wage developing world.
After fixating on an inflation scare over the past four months, financial markets have turned their attention ...]]></description>
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		<slash:comments>0</slash:comments>
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		<item>
		<title>chicken little</title>
		<link>http://www.freedom24.org/rationalpost/2006/08/29/chicken-little/</link>
		<comments>http://www.freedom24.org/rationalpost/2006/08/29/chicken-little/#comments</comments>
		<pubDate>Wed, 30 Aug 2006 01:59:34 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[bubble]]></category>
		<category><![CDATA[employment]]></category>
		<category><![CDATA[history]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[macroeconomics]]></category>
		<category><![CDATA[real estate]]></category>
		<category><![CDATA[speculation]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/2006/08/29/chicken-little/</guid>
		<description><![CDATA[&#8220;I can calculate the movement of the stars, but NOT the madness of men.&#8221;
- Sir Isaac Newton, after losing a fortune (£20,000) in the South Sea bubble.
I&#8217;ve been meaning to write about the impending real estate crash for quite some time, but until I get around to it, this piece is worth a read. Roubini is a Professor of Economics at the Stern School of Business at New York  University, and the work below is taken from his blog. Though the prose is somewhat awkward, anyone who produces &#8220;seminal work in international  macroeconomics, global macro policies, financial crises in emerging markets and  their resolution, and the reform of the international financial architecture&#8221; deserves at least a few ...]]></description>
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		<slash:comments>0</slash:comments>
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		<title>risk/reward</title>
		<link>http://www.freedom24.org/rationalpost/2005/12/20/riskreward/</link>
		<comments>http://www.freedom24.org/rationalpost/2005/12/20/riskreward/#comments</comments>
		<pubDate>Tue, 20 Dec 2005 18:19:00 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[finance & economics]]></category>
		<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[capital markets]]></category>
		<category><![CDATA[derivatives]]></category>
		<category><![CDATA[investment]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[structured finance]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/?p=59</guid>
		<description><![CDATA[as a primer on basic investment analysis and the ongoing challenge of balancing risk and reward, this email exchange tries to demystify the increasingly lucritive but often frigtening world of &#8220;structured finance&#8221;. caveat investor&#8230;
From: [a good friend]
Sent: December 20, 2005 9:56 AM
To: [me]
Subject: Can you please look at this prospectus?
My father is interested in this but thinks it may be too good to be true. What is your opinion?
From: [me]
Sent: December 20, 2005 11:14 AM
To: [a good friend]
Subject: RE: Can you please look at this prospectus?
it&#8217;s called &#8220;structured finance&#8221;, and it happens all the time. think of  the income trust as a really tasty cake. each individual layer of the cake is a  different type of security, from ...]]></description>
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