Dear ATCA Colleagues

[Please note that the views presented by individual contributors are not necessarily representative of the views of ATCA, which is neutral. ATCA conducts collective Socratic dialogue on global opportunities and threats.]

We are grateful to:

. Prof Dr Norbert Walter, Chief Economist, Deutsche Bank Group, based in Frankfurt, Germany, for "Economic Consequences of The Sub-Prime Crisis;"
. Anthony Whitehouse based in Coppet and Geneva, Switzerland, for "Regulators, Hedge Fund Lending and Cross-Selling;"
. The ATCA Editorial Team, based in Canary Wharf, London, UK, for "Perfect Storm: Credit Freeze and Distress Selling by Hedge Funds;"
. Dr George Feiger, based in Berkeley, California, USA, for "Two Faces of the Same Coin;"
. The ATCA Editorial Team, based in Canary Wharf, London, for "Contagion and Systemic Risk? ECB Injects Record Euro 95bn post Major Disturbance;"
. The ATCA Editorial Team, for "Flight to Quality as Markets finally Appreciate Risk;"
. Robert McNally, Chairman, London Chamber of Commerce Property and Construction Group, for "Erosion of Commercial Real Estate as a Solid Asset Class;"
. Alexander Hoare, CEO, C Hoare and Co, Private Bankers, based in the City of London, for "Destructive Creativity, Leverage and The Derivatives Market;" and
. Dr Harald Malmgren, CEO, Malmgren Global, based in Washington, DC, for "The Fear of Central Bankers -- Flight from Illiquidity, Derivatives and Heightened Risk of Contagion;"

in response to, "Are the Currency Markets Warning that there is Trouble Ahead? The Precipitous Decline of the US Dollar and its Impact on the World."

Prof Dr Norbert Walter is Chief Economist of Deutsche Bank Group and Head of Deutsche Bank Research. Before his current position he was Professor and Director at the renowned Kiel Institute for World Economics and was a John J McCloy Distinguished Research Fellow at the American Institute for Contemporary Studies at the Johns Hopkins University in Washington, DC (1986 - 1987). He holds a doctorate in economics from the Johann-Wolfgang-Goethe University, Frankfurt-am-Main. As chief economist of Deutsche Bank Group Norbert Walter is responsible for a globally integrated approach in economic research. Deutsche Bank's think tank, Deutsche Bank Research, covers a wide spectrum of issues ranging from economic forecasting to country rating and sector analysis. Services are rendered to the Bank's board, staff, customers and the general public. In addition to holding these responsibilities at Deutsche Bank, Professor Walter is a member of the Committee of Wise Men on the Regulation of European Securities Markets ("Lamfalussy Group"). Norbert Walter loves debate, and he will gladly hold forth on anything from deflation, the prospects offered by the internet, the Euro's perspective or the role of the IMF. Many know him -- as he says himself, he is like a cup of espresso: small, dark and strong -- from watching the evening news bulletins. When it is a question of explaining economic issues, editors of television news, programmes, and newspaper and magazine editors, look to the 61-year old based in Frankfurt for comment and explanation. He is old Europe's economist, with a keen interest in a global perspective. He writes:

Dear DK and Colleagues

Re: Economic Consequences of The Sub-Prime Crisis

The following comments may be of interest to distinguished ATCA members.

The reactions to the subprime crisis have sent virtually all markets tumbling. The economy will not escape unscathed from this. Hardest hit will be the US. Europe and especially Germany are still in for a rough ride, but they will settle down again. What gets me is that, once again, the worries expressed and explained by economists very early on were dismissed out of hand for much too long. And now that the worries are finally being taken seriously, people are going from one extreme to the other.

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Kind regards

Norbert Walter
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Anthony Whitehouse, based in Switzerland, has substantial experience in trust creation and administration and the management of offshore structures, especially as they relate to the administration of intellectual property. In addition, he has expertise in the business management of high net worth individuals in the entertainment sector. He has recently given up business to enter into the public ministry of his Church. Anthony entered the trust business as a senior manager with the Lausanne-based branch of a Bahamas Trust company in 1978 before leaving to join a major international bank in 1988 as manager of Fiduciary Services Operations in Geneva. Together with Richard Bittiner he set up Bittiner Whitehouse, an accounting and trust administration practice, in 1992. Bittiner Whitehouse was acquired by the Maitland Group in 2003. Anthony qualified as a Chartered Accountant in England in 1968. He obtained his MBA from IMD in 1973 and was one of the founding members of STEP in the French-speaking area of Switzerland. He speaks English and French. He writes:

Dear DK and Colleagues

Re: Regulators, Hedge Fund Lending and Cross-Selling

Your very illuminating ATCA piece brings into perspective the hubris of some major banks in not only lending to hedge funds but in also lending to their clients against their collateral of their hedge fund holdings.

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Sincerely

Anthony Whitehouse