{"id":7458,"date":"2024-02-26T16:07:31","date_gmt":"2024-02-26T16:07:31","guid":{"rendered":"https:\/\/newmoneyreview.com\/?p=7458"},"modified":"2024-04-23T18:02:31","modified_gmt":"2024-04-23T18:02:31","slug":"the-problem-of-debt","status":"publish","type":"post","link":"https:\/\/newmoneyreview.com\/index.php\/2024\/02\/26\/the-problem-of-debt\/","title":{"rendered":"The problem of debt"},"content":{"rendered":"<p>In <a href=\"https:\/\/blubrry.com\/newmoneyreview\/131164166\/the-problem-of-debt\/\">the latest <em>New Money Review podcast<\/em><\/a> I\u2019m delighted to welcome Satyajit Das, a former investment banker, derivatives expert and author.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-7460\" src=\"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2024\/02\/das.jpg\" alt=\"\" width=\"225\" height=\"225\" srcset=\"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2024\/02\/das.jpg 225w, https:\/\/newmoneyreview.com\/wp-content\/uploads\/2024\/02\/das-150x150.jpg 150w\" sizes=\"auto, (max-width: 225px) 100vw, 225px\" \/><\/p>\n<p><em>Satyajit Das<\/em><\/p>\n<p>Das&#8217;s book \u201cTraders, Guns and Money\u201d, published in 2006, remains one of the best books ever written about the world of high finance.<\/p>\n<p>It\u2019s been called \u201ca wickedly comic expos\u00e9 of the culture, games and pure deceptions played out every day in trading rooms around the world. And played out with other people\u2019s money.\u201d<\/p>\n<p>Das went on to publish \u201cExtreme Money\u201d and \u201cThe Age of Stagnation\u201d, in which a common theme is the high global levels of debt.<\/p>\n<p><a href=\"https:\/\/blubrry.com\/newmoneyreview\/131164166\/the-problem-of-debt\/\">In the podcast<\/a>, Das talks in detail about debt and the complexities of measuring it. He says all financial markets are now at risk from excessive leverage.<\/p>\n<p>Japan, whose currency has recently undergone a big devaluation, may point the way ahead for all of us, he says.<\/p>\n<p>We discuss:<\/p>\n<ul>\n<li>Why debt is like heroin<\/li>\n<li>How the marginal productivity of debt has been falling<\/li>\n<li>Reaching the \u201ctrust moment\u201d in government bond markets<\/li>\n<li>How vulnerable are US Treasuries to a liquidity crisis?<\/li>\n<li>Why inflation may be higher for longer\u2026<\/li>\n<li>\u2026and interest rates could overshoot expectations<\/li>\n<li>Debt on debt and the challenge of understanding leverage<\/li>\n<li>How tech entrepreneurs borrow against equity<\/li>\n<li>Complexities in leverage chains\u2014the example of Greensill<\/li>\n<li>Why non-bank financing of debt is particularly risky<\/li>\n<li>Why regulators struggle to monitor shadow banks<\/li>\n<li>Cross-border exposures in the Evergrande bankruptcy<\/li>\n<li>Why the \u201cusual disinfectants\u201d\u2014better disclosure and more capital\u2014no longer work<\/li>\n<li>How Japan finally escaped its debt trap\u2014by devaluing its currency<\/li>\n<li>Why sovereign wealth funds are buying up global infrastructure<\/li>\n<li>The end of financial engineering<\/li>\n<\/ul>\n<p><em>In each thirty-minute episode, the New Money Review podcast brings you the best minds from the world of money. <\/em><\/p>\n<p><em>From economics to payments, financial markets, technology, law, digital assets, crime and fraud, you&#8217;ll find an episode that interests you. <a href=\"https:\/\/blubrry.com\/newmoneyreview\/\">Listen in<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the latest New Money Review podcast I\u2019m delighted to welcome Satyajit Das, a former investment banker, derivatives expert and author. Satyajit Das Das&#8217;s book \u201cTraders, Guns and Money\u201d, published [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":7428,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1013,1012,1053,1014,1011],"tags":[2246,2249,2248,2247,2245],"class_list":{"0":"post-7458","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-account","8":"category-exchange","9":"category-featured-1","10":"category-payment","11":"category-value","12":"tag-debt","13":"tag-evergrande","14":"tag-greensill","15":"tag-leverage","16":"tag-satyajit-das"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The problem of debt - 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