Wednesday, July 2, 2008

Recession Contract Launched

iPredict is pleased to launch a contract on the possibility of a New Zealand recession being declared for the June quarter.

On 27 June, Statistics NZ announced GDP growth for the March quarter of -0.3%.

If Statistics NZ reports another quarter of negative growth in June 2008, a recession - defined as two consecutive quarters of negatvie economic growth - will have occurred.

Our contract pays $1 per share if this occurs. We expect Statistics NZ to report this result in late September or early October.

If the March 2008 GDP growth figure is revised to a positive value before this contract closes, then this stock pays $0.

If you have any questions on the stock's definition, please ask us for clarification.