Satyajit Das,author of ‘Traders,Guns and Money’ just appeared on NDTV Profit….Here’s what he said on the Global Crisis

Hey ! just saw Satyajit Das on NDTV Profit this morning…speaking from Sydney…Check out my Pages section in the section,Books you must read…I have featured Satyajit Das’s ‘Traders,Guns and Money’…a book where he states that  Money cannot be made Honestly in Derivatives !

Here are  some views expressed by Das on TV this morning

  • 2009 will be a worse year than 2008
  • The US ‘Bad Bank’ Proposal that will have the Government take on the Toxic Debt from all Banks onto it’s own Books..It will in one stroke clean up all banks to facilitate their revival and create fresh leverage for Operating…..This will only transfer the problem from the Individual and the Company to the Government…When actually it should be  de-leveraging that should take place…This is not happening…The Problem was created by excessive Debt in the first Place
  • The Chinese Premier gave a recent warning that was not widely reported…He warned that China will only buy that much US Treasury Bonds that will cater to it’s needs….This clearly means that China will not support US Treasury Issues like it has in the Past…Throws up the Exchange Risk of the Dollar
  • Exports  to China from Japan and Taiwan and Korea have dropped by 24% to 40%…China is the work bench of the World…It imports ,assembles and manufactures and then exports…USA and Europe are not buying and therefore Chinese Exports have dropped…..Two Million expat worker jobs  will go…One of Seven expats in China will lose their jobs…Many Factories closed for the Holiday Season may not reopen
  • Emerging Markets will be Hit 
  • Recession is when others are losing their Jobs…Depression is when you lose yours ! 
  • The next Bubble may be in the Long Term 10 yr to 30 yr Bonds where the Yeilds have shot up