Satyajit Says …. Leading To Mid Year Reflections

In any bond trader’s library, we need to have the Fabozzi bible. Next you need Hull for options. But the funky look is only complete with Satyajit Das’s Derivative Products & Pricing and/or Satyajit Das’s Credit Derivatives.

Satyajit says,

“The global economy and financial system cannot escape the debt overhang and structural problems, at least without pain. Policymakers are now trapped between existing policies of decreasing efficacy and increasing toxic side effects and withdrawing these measures with uncertain consequences, potentially a complete collapse. The required balance sheet repair and simultaneous correction of public finances would result in a sharp fall in aggregate demand, exacerbating not solving the problem.”


Funny thing is that we have all these great names on YouTube – Das, Prechter, Stiglitz but their videos only draw like 800 hits.

I took the time to watch his 48 minute speech, The End of Trust which had only 749 views. It was presented in June.


It opens with “Everybody lies.”

Yes and the age is coming for the end of confidence in the entire system. All signs are there that governments and central banks are unable to set the world back on a path of growth but have instead set the world back into a degenerative vicious cycle of widening gaps and entire marketplaces dependent on the word of 1 man.

I whole heartedly agree with Satyajit, along with the other 749 people who have viewed his video.

Just like I saw this at the start of this year when I wrote When Doves Cry – Crisis of Confidence 2013.

Was right on the big picture but wrong on some of the outcomes – gold/silver, agriculture and timed the equity correction wrong.

As we head further into the second half of 2013, the picture is becoming bleaker somewhat yet, most of the market folks are just choosing not to think too much about it.