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Shalom Patrick Hamou

                 
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I have an engineer diploma from Ecole Centrale de Lyon (France) and a MBA from Boston University. Since 1986 till 1994 I have worked as a broker dealer on the French Domestic Fixed interest market.

Since the spring of 1994 I have worked on the fact that the secular downward trend in long-term yield would, at some point, bring a market crash.

I have resolved the famous Greenspan Conundrum as I discovered that long-term yields decrease with the increase of income/wealth gap. Hence income distribution is an important factor of macro economic development.

I have developed a model of the yield curve that describe long-term yields as options on shorter term yields.

My conclusion was that when a "inverted' yield curve, as it would necessary be, would return to its fair value it will trigger a market crash which under the circumstances of a 0% short-term interest would be of major consequences.

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Friday, October 1, 2010      Add this Page to Facebook!   Submit to Twitter   Submit to Reddit   Submit to Stumble Upon   Pin It!   Fark It!   Tell A Friend
The Legends of Quantitative Easing
(1 comments) Numerous people are worried by Quantitative Easing but obviously most don't understand exactly what it really means and what are the risks. Those risks are more formidable than commonly thought

Friday, October 1, 2010      Add this Page to Facebook!   Submit to Twitter   Submit to Reddit   Submit to Stumble Upon   Pin It!   Fark It!   Tell A Friend
If It Costs 0, It Is Worth ...
(2 comments) Now we have been for more than 18 month under the regime of the 0% target discount rate. We have injected trillions of money that never were translated in long-term investments. We must draw the conclusions now and those are straightforward. If the risk free rate is 0% it means that there is no individual or social value of incremental investments. It means simply that we have too much of them.