Overview:A Decade Ahead in understanding the Sub-Prime Crisis
Wharton Partners in its seminal research report in 1998 predicted and described the process of how a Global Debt Crisis was approaching due to Globalization and the state of Debt Capital Markets. We described the process by which this would occur when no financial research group understood this future happening. A Cover story on this analysis was printed in the Pakistan and Gulf economist “Why Global Economic Liberalization spells trouble for borrowers” in spring 1998.
Looking forward, we expect this crisis to spread even more in the industrial and other sector unless drastic actions are done to correct fundamental issues in the Global Financial System. Some key aspects we believe have still not been identified by leaders in Global Finance.
Founded by a group of Wharton Alumni, Wharton partners had key insight about the sub-prime crisis. One of the primary founders Mr. Niazi is a Wharton Alumni and an ex colleague of Fisher Black at Goldman Sachs Fixed Income Research department. Wharton Partners uniquely understood the impact of Globalization on the borrowers with the least ability to refinance debt. This let Wharton Partners to conclude a looming borrowing and banking crisis if radical changes were not made to the Global Financial system.