Sunday, May 15, 2016

Satyajit Das On
Financial Repression
Das points out that since the financial crisis: "We’ve had over 600 interest rate cuts globally. Interest rates are pretty much around zero around the world." .. going forth: "What we’re going to see is a period of financial repression, which is very, very dangerous." .. Das sees massive levels of debt as the big problem .. worries about China - "I think the best case is that China becomes like Japan, which is putting all these bad debts on their balance sheet and gradually slowing down." .. The problem is if they miscalculate, the problem is bigger & comes upon them in a way that is much quicker that you could potentially get a banking meltdown. The problem with that is that would spread from China out very quickly because there’s about a trillion dollars of exposure that far end lenders have to Chinese banks & Chinese companies .. 33 minutes

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