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<title>Minyanville - Satyajit Das RSS</title>
<description>
The Trusted Choice for the Wall Street Voice
</description>
<link>
		http://www.minyanville.com</link>
<copyright>
		2013Minyanville Publishing and Multimedia, LLC. All Rights Reserved
</copyright>
		<item>
<title><![CDATA[Satyajit Das: Why the Currency Wars Matter  ]]></title>
<link>
			http://www.minyanville.com/trading-and-investing/currencies/articles/Satyajit-Das253A-Why-the-Currency-Wars/5/13/2013/id/49772</link>
<pubDate>
			Mon, 13 May 2013 10:42:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/trading-and-investing/currencies/articles/Satyajit-Das253A-Why-the-Currency-Wars/5/13/2013/id/49772</guid>
<description>
<![CDATA[(With apologies to The Weather Girls), it's now raining yen!

Japan has opened a new front in the "currency wars," a term coined by Brazilian Finance Minister Guido Mantega in 2010. The US, UK, and Switzerland are already enjoined, with Europe likely to take up arms shortly. Nations which constitute around 70% of world output are "at war," pursuing policies which entail devaluation and currency debasement.

Currency Battles, Economic Wars

But currency conflicts are merely skirmishes in the broader economic wars between nations. Most developed nations now have adopted a similar set of policies, to deal with problems of low ]]>
</description>
<content:encoded>
	<![CDATA[(With apologies to The Weather Girls), it's now raining yen!

Japan has opened a new front in the "currency wars," a term coined by Brazilian Finance Minister Guido Mantega in 2010. The US, UK, and Switzerland are already enjoined, with Europe likely to take up arms shortly. Nations which constitute around 70% of world output are "at war," pursuing policies which entail devaluation and currency debasement.

Currency Battles, Economic Wars

But currency conflicts are merely skirmishes in the broader economic wars between nations. Most developed nations now have adopted a similar set of policies, to deal with problems of low ]]>
</content:encoded>
			</item>
			<item>
<title><![CDATA[Satyajit Das: The End of Growth, Part 2]]></title>
<link>
			http://www.minyanville.com/business-news/markets/articles/Satyajit-Das253A-The-End-of-Growth/4/17/2013/id/49279</link>
<pubDate>
			Wed, 17 Apr 2013 13:15:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/business-news/markets/articles/Satyajit-Das253A-The-End-of-Growth/4/17/2013/id/49279</guid>
<description>
<![CDATA[Editor&#39;s note: Click here to read "The End of Growth, Part 1."

The era of continual global economic growth may be ending. Debt-fuelled financially engineered growth, environmental issues, and the scarcity of essential resources now threaten the world.

The problem is the economic model itself. As former Fed Chairman Paul Volcker observed on December 11, 2009: "We have another economic problem which is mixed up in this of too much consumption, too much spending relative to our capacity to invest and to export. It's involved with the financial crisis, but in a way it's more difficult than the financial crisis ]]>
</description>
<content:encoded>
	<![CDATA[Editor&#39;s note: Click here to read "The End of Growth, Part 1."

The era of continual global economic growth may be ending. Debt-fuelled financially engineered growth, environmental issues, and the scarcity of essential resources now threaten the world.

The problem is the economic model itself. As former Fed Chairman Paul Volcker observed on December 11, 2009: "We have another economic problem which is mixed up in this of too much consumption, too much spending relative to our capacity to invest and to export. It's involved with the financial crisis, but in a way it's more difficult than the financial crisis ]]>
</content:encoded>
			</item>
			<item>
<title><![CDATA[Satyajit Das: The End of Growth, Part 1]]></title>
<link>
			http://www.minyanville.com/business-news/politics-and-regulation/articles/Satyajit-Das253A-The-End-of-Growth/4/16/2013/id/49278</link>
<pubDate>
			Tue, 16 Apr 2013 10:17:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/business-news/politics-and-regulation/articles/Satyajit-Das253A-The-End-of-Growth/4/16/2013/id/49278</guid>
<description>
<![CDATA[Alan Weisman's bestselling book The World Without Us was based around a thought experiment &ndash; what would a world bereft of humans revert to. Society increasingly needs to focus on what a world without growth, or at least low and uneven rates of growth will look like.

Growth is a relatively recent phenomenon. In a deliberately provocative 2012 National Bureau of Economic Research paper entitled "Is US Economic Growth Over? Faltering Innovation Confronts The Six Headwinds," economist Robert Gordon found that prior to 1750 there was little or no economic growth (as measured by increases in gross domestic product per ]]>
</description>
<content:encoded>
	<![CDATA[Alan Weisman's bestselling book The World Without Us was based around a thought experiment &ndash; what would a world bereft of humans revert to. Society increasingly needs to focus on what a world without growth, or at least low and uneven rates of growth will look like.

Growth is a relatively recent phenomenon. In a deliberately provocative 2012 National Bureau of Economic Research paper entitled "Is US Economic Growth Over? Faltering Innovation Confronts The Six Headwinds," economist Robert Gordon found that prior to 1750 there was little or no economic growth (as measured by increases in gross domestic product per ]]>
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			<item>
<title><![CDATA[Satyajit Das: 6 Ways the Cyprus Solution Will Exacerbate the European Debt Crisis]]></title>
<link>
			http://www.minyanville.com/sectors/global-markets/articles/Satyajit-Das-6-Ways-the-Cyprus/3/26/2013/id/48918</link>
<pubDate>
			Tue, 26 Mar 2013 10:10:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/sectors/global-markets/articles/Satyajit-Das-6-Ways-the-Cyprus/3/26/2013/id/48918</guid>
<description>
<![CDATA[Financial markets have taken Cyprus in their stride. But it is important not to underestimate the potential fallout.The impact of relatively small events is unpredictable. The 1931 collapse of the small Austrian bank Creditanstalt precipitated a major financial panic. One the smallest countries in Europe with little over 1 million people and about 0.5% of the European Union (EU) economically, Cyprus, may prove a key inflection point in the crisis.

The well anticipated EU bailout package included the controversial provision that ordinary depositors pay a "tax" or "solidarity levy" on Cypriot bank deposits, amounting to a permanent write down in ]]>
</description>
<content:encoded>
	<![CDATA[Financial markets have taken Cyprus in their stride. But it is important not to underestimate the potential fallout.The impact of relatively small events is unpredictable. The 1931 collapse of the small Austrian bank Creditanstalt precipitated a major financial panic. One the smallest countries in Europe with little over 1 million people and about 0.5% of the European Union (EU) economically, Cyprus, may prove a key inflection point in the crisis.

The well anticipated EU bailout package included the controversial provision that ordinary depositors pay a "tax" or "solidarity levy" on Cypriot bank deposits, amounting to a permanent write down in ]]>
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			</item>
			<item>
<title><![CDATA[Satyajit Das: The European Debt Crisis Is Not Over]]></title>
<link>
			http://www.minyanville.com/sectors/global-markets/articles/eurozone-debt-crisis-not-over-satyajit/1/22/2013/id/47525</link>
<pubDate>
			Tue, 22 Jan 2013 09:05:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/sectors/global-markets/articles/eurozone-debt-crisis-not-over-satyajit/1/22/2013/id/47525</guid>
<description>
<![CDATA[European equity and bond markets performed well in the second half of 2012. The rally reflected a growing belief that the eurozone and the European Central Bank (ECB) was, at last, taking the correct policy actions. But despite statements by European leaders and policy makers, it is premature to claim victory in the European debt wars.
 
The financial resources remaining to deal with the crisis may be insufficient. The amounts available have not changed for almost two years, with little appetite for increasing commitments.
 
The major bailout facility -- the European Stability Mechanism (ESM) -- has total lending capacity of ]]>
</description>
<content:encoded>
	<![CDATA[European equity and bond markets performed well in the second half of 2012. The rally reflected a growing belief that the eurozone and the European Central Bank (ECB) was, at last, taking the correct policy actions. But despite statements by European leaders and policy makers, it is premature to claim victory in the European debt wars.
 
The financial resources remaining to deal with the crisis may be insufficient. The amounts available have not changed for almost two years, with little appetite for increasing commitments.
 
The major bailout facility -- the European Stability Mechanism (ESM) -- has total lending capacity of ]]>
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			</item>
			<item>
<title><![CDATA[Satyajit Das: Japan's Forgotten Debt Problem]]></title>
<link>
			http://www.minyanville.com/sectors/global-markets/articles/Japan2527s-Forgotten-Debt-Problem-japanese-economy/1/14/2013/id/47354</link>
<pubDate>
			Mon, 14 Jan 2013 10:30:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/sectors/global-markets/articles/Japan2527s-Forgotten-Debt-Problem-japanese-economy/1/14/2013/id/47354</guid>
<description>
<![CDATA[In 1979, the publication of Harvard sociologist Ezra Vogel's international best-selling book Japan as Number 1 signaled the nation's arrival as an economic power. Today, Japan's industrial and economic decline is palpable.

Japan's Nikkei 225 (INDEXNIKKEI:NI225) stock average rose by around 23% in 2012. Much of the increase reflects faith in the reflation strategy of second time Prime Minster Shinzo Abe to increase growth through an additional US$120 billion of public spending, create inflation to reduce the debt to GDP ratio, and devalue the yen. The strategies have all been tried before, with limited success. There is no reason to ]]>
</description>
<content:encoded>
	<![CDATA[In 1979, the publication of Harvard sociologist Ezra Vogel's international best-selling book Japan as Number 1 signaled the nation's arrival as an economic power. Today, Japan's industrial and economic decline is palpable.

Japan's Nikkei 225 (INDEXNIKKEI:NI225) stock average rose by around 23% in 2012. Much of the increase reflects faith in the reflation strategy of second time Prime Minster Shinzo Abe to increase growth through an additional US$120 billion of public spending, create inflation to reduce the debt to GDP ratio, and devalue the yen. The strategies have all been tried before, with limited success. There is no reason to ]]>
</content:encoded>
			</item>
			<item>
<title><![CDATA[Satyajit Das: Return of the Age of Gold]]></title>
<link>
			http://www.minyanville.com/trading-and-investing/etfs/articles/Satyajit-Das253A-Return-of-the-Age/12/3/2012/id/46281</link>
<pubDate>
			Mon, 3 Dec 2012 10:04:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/trading-and-investing/etfs/articles/Satyajit-Das253A-Return-of-the-Age/12/3/2012/id/46281</guid>
<description>
<![CDATA[In Germany, gold is now available from vending machines in airports and railway stations &ndash; Gold to Go. Shoppers can buy a 1-gram wafer of gold or a larger 10g bar. Seeking safety for their savings, individuals have purchased 150 tons of gold, mainly in the form of coins. Investors poured money into special funds (known as exchange traded funds (ETFs)) which pool investor monies to buy over 1,000 tons of gold. Having earlier sold off their holding, some central banks are now re-building their gold reserves.

Refiners are unable to keep up with demand for gold bars and coins. ]]>
</description>
<content:encoded>
	<![CDATA[In Germany, gold is now available from vending machines in airports and railway stations &ndash; Gold to Go. Shoppers can buy a 1-gram wafer of gold or a larger 10g bar. Seeking safety for their savings, individuals have purchased 150 tons of gold, mainly in the form of coins. Investors poured money into special funds (known as exchange traded funds (ETFs)) which pool investor monies to buy over 1,000 tons of gold. Having earlier sold off their holding, some central banks are now re-building their gold reserves.

Refiners are unable to keep up with demand for gold bars and coins. ]]>
</content:encoded>
			</item>
			<item>
<title><![CDATA[Satyajit Das: America's Fiscal Cliffs and Debt Mountains]]></title>
<link>
			http://www.minyanville.com/business-news/politics-and-regulation/articles/fiscal-cliff-Satyajit-Das-us-economy/11/16/2012/id/45896</link>
<pubDate>
			Fri, 16 Nov 2012 09:40:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/business-news/politics-and-regulation/articles/fiscal-cliff-Satyajit-Das-us-economy/11/16/2012/id/45896</guid>
<description>
<![CDATA[The world is focused on the fiscal cliff, a term referring to the scheduled reductions in the US budget deficit by way of expiring tax cuts and mandatory spending cuts. The fiscal cliff may, ironically, improve public finances, reducing the deficit and slowing the increase in debt levels &ndash; America's debt mountain. But going over the fiscal cliff will not in and of itself solve America's fundamental financial problems.
 
Successive US administrations have avoided dealing with the US debt problem. Policy makers have adopted the rule book of rapper Tupac Shakur: "Reality is wrong. Dreams are for real."
 
Debt Mountains ]]>
</description>
<content:encoded>
	<![CDATA[The world is focused on the fiscal cliff, a term referring to the scheduled reductions in the US budget deficit by way of expiring tax cuts and mandatory spending cuts. The fiscal cliff may, ironically, improve public finances, reducing the deficit and slowing the increase in debt levels &ndash; America's debt mountain. But going over the fiscal cliff will not in and of itself solve America's fundamental financial problems.
 
Successive US administrations have avoided dealing with the US debt problem. Policy makers have adopted the rule book of rapper Tupac Shakur: "Reality is wrong. Dreams are for real."
 
Debt Mountains ]]>
</content:encoded>
			</item>
			<item>
<title><![CDATA[Satyajit Das Presents a Global Economy Health Check]]></title>
<link>
			http://www.minyanville.com/business-news/markets/articles/global-economy-quantitative-easing-central-banks/10/8/2012/id/44756</link>
<pubDate>
			Mon, 8 Oct 2012 10:45:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/business-news/markets/articles/global-economy-quantitative-easing-central-banks/10/8/2012/id/44756</guid>
<description>
<![CDATA[As requested, I have undertaken an extensive examination of Mr. Global Economy, both physical and psychological.
 
Patient History
 
The patient's history includes a seizure in 2007/ 2008 including financial losses, banking problems, a major recession, etc. Liberal injections of tax payer cash avoided catastrophic multiple organ failure, and assisted a modest recovery.
 
Governments ran large budget deficits in the period after the crisis. Interest rates around the world were reduced to historic lows; some were even reduced to zero in many developed countries.
 
With interest rates constrained at zero, central banks have adopted "innovative" treatments, referred to as quantitative easing, ]]>
</description>
<content:encoded>
	<![CDATA[As requested, I have undertaken an extensive examination of Mr. Global Economy, both physical and psychological.
 
Patient History
 
The patient's history includes a seizure in 2007/ 2008 including financial losses, banking problems, a major recession, etc. Liberal injections of tax payer cash avoided catastrophic multiple organ failure, and assisted a modest recovery.
 
Governments ran large budget deficits in the period after the crisis. Interest rates around the world were reduced to historic lows; some were even reduced to zero in many developed countries.
 
With interest rates constrained at zero, central banks have adopted "innovative" treatments, referred to as quantitative easing, ]]>
</content:encoded>
			</item>
			<item>
<title><![CDATA[The LIBOR Fix, Part Two]]></title>
<link>
			http://www.minyanville.com/trading-and-investing/currencies/articles/libor-manipulation-of-money-market-rates/7/24/2012/id/42658</link>
<pubDate>
			Tue, 24 Jul 2012 10:00:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/trading-and-investing/currencies/articles/libor-manipulation-of-money-market-rates/7/24/2012/id/42658</guid>
<description>
<![CDATA[Editor&#39;s Note: This article is the first part of a two-part series.  Click here to read The LIBOR Fix, Part One.

The Long Fix 

Lord Turner, the head of UK FSA, told a UK parliamentary committee that it hadn't occurred to him before 2009 that the rate was something that could be manipulated. However, anecdotal evidence suggests that LIBOR submissions may have been manipulated over a long period. Banks and regulators may have been aware of these practices for some time, but did not take corrective action.

Barclays' (BCS) senior management and board of directors have indicated that they became ]]>
</description>
<content:encoded>
	<![CDATA[Editor&#39;s Note: This article is the first part of a two-part series.  Click here to read The LIBOR Fix, Part One.

The Long Fix 

Lord Turner, the head of UK FSA, told a UK parliamentary committee that it hadn't occurred to him before 2009 that the rate was something that could be manipulated. However, anecdotal evidence suggests that LIBOR submissions may have been manipulated over a long period. Banks and regulators may have been aware of these practices for some time, but did not take corrective action.

Barclays' (BCS) senior management and board of directors have indicated that they became ]]>
</content:encoded>
			</item>
			<item>
<title><![CDATA[The LIBOR Fix, Part One]]></title>
<link>
			http://www.minyanville.com/trading-and-investing/currencies/articles/libor-manipulation-of-money-market-rates/7/23/2012/id/42645</link>
<pubDate>
			Mon, 23 Jul 2012 11:30:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/trading-and-investing/currencies/articles/libor-manipulation-of-money-market-rates/7/23/2012/id/42645</guid>
<description>
<![CDATA[Editor&#39;s Note: This article is the first part of a two-part series. Click here to read The LIBOR Fix, Part Two.

Depending on context, the word "fix" can mean "set" or "determine," "manipulate" or "rig," as well as "repair" or "correct." "In a fix" means to be in a difficult situation. In colloquial use, "fix" is a dose of an addictive substance that is habitually consumed. The current furor surrounding manipulation of money market rates contains all these meanings and more.

An objective mechanism is needed to set money markets rates used in a variety of instruments. A number of ]]>
</description>
<content:encoded>
	<![CDATA[Editor&#39;s Note: This article is the first part of a two-part series. Click here to read The LIBOR Fix, Part Two.

Depending on context, the word "fix" can mean "set" or "determine," "manipulate" or "rig," as well as "repair" or "correct." "In a fix" means to be in a difficult situation. In colloquial use, "fix" is a dose of an addictive substance that is habitually consumed. The current furor surrounding manipulation of money market rates contains all these meanings and more.

An objective mechanism is needed to set money markets rates used in a variety of instruments. A number of ]]>
</content:encoded>
			</item>
			<item>
<title><![CDATA[What (Little) We Know For Sure After the Eurozone Summit ]]></title>
<link>
			http://www.minyanville.com/mvpremium/2012/07/10/what-little-we-know-for/</link>
<pubDate>
			Tue, 10 Jul 2012 13:23:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/mvpremium/2012/07/10/what-little-we-know-for/</guid>
<description>
<![CDATA[MINYANVILLE ORIGINAL Initially the eurozone leaders&rsquo; summit was viewed by many participants as &ldquo;encouraging.&rdquo; Subsequently, the European Central Bank (&ldquo;ECB&rdquo;) cut rates by 0.25%. But for financial markets, the anaesthetic is wearing off as Spanish bond yields rise and old problems resurface.
Â 
In truth, the results of the summit were always unclear. The proposals were vague and lacked vital details.
Â 
Clear Confusion
Â 
The summit supported a single regulatory body for all European banks. But this is impossible without resources to recapitalize European banks or progress on a Europe-wide deposit insurance scheme which would limit capital flight from ]]>
</description>
<content:encoded>
	<![CDATA[MINYANVILLE ORIGINAL Initially the eurozone leaders&rsquo; summit was viewed by many participants as &ldquo;encouraging.&rdquo; Subsequently, the European Central Bank (&ldquo;ECB&rdquo;) cut rates by 0.25%. But for financial markets, the anaesthetic is wearing off as Spanish bond yields rise and old problems resurface.
 
In truth, the results of the summit were always unclear. The proposals were vague and lacked vital details.
 
Clear Confusion
 
The summit supported a single regulatory body for all European banks. But this is impossible without resources to recapitalize European banks or progress on a Europe-wide deposit insurance scheme which would limit capital flight from ]]>
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			<item>
<title><![CDATA[Eurozone Summit Results: A Life Threatening Emergency Has Been Converted to a Chronic Disease With Limited Treatment Options]]></title>
<link>
			http://www.minyanville.com/business-news/the-economy/articles/eurozone-euro-crisis-capital-injections-euro/7/10/2012/id/42294</link>
<pubDate>
			Tue, 10 Jul 2012 11:15:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/business-news/the-economy/articles/eurozone-euro-crisis-capital-injections-euro/7/10/2012/id/42294</guid>
<description>
<![CDATA[MINYANVILLE ORIGINAL Initially the eurozone leaders' summit was viewed by many participants as "encouraging." Subsequently, the European Central Bank ("ECB") cut rates by 0.25%. But for financial markets, the anaesthetic is wearing off as Spanish bond yields rise and old problems resurface.
 
In truth, the results of the summit were always unclear. The proposals were vague and lacked vital details.
 
Clear Confusion
 
The summit supported a single regulatory body for all European banks. But this is impossible without resources to recapitalize European banks or progress on a Europe-wide deposit insurance scheme which would limit capital flight from peripheral countries.
 
Meanwhile, ]]>
</description>
<content:encoded>
	<![CDATA[MINYANVILLE ORIGINAL Initially the eurozone leaders' summit was viewed by many participants as "encouraging." Subsequently, the European Central Bank ("ECB") cut rates by 0.25%. But for financial markets, the anaesthetic is wearing off as Spanish bond yields rise and old problems resurface.
 
In truth, the results of the summit were always unclear. The proposals were vague and lacked vital details.
 
Clear Confusion
 
The summit supported a single regulatory body for all European banks. But this is impossible without resources to recapitalize European banks or progress on a Europe-wide deposit insurance scheme which would limit capital flight from peripheral countries.
 
Meanwhile, ]]>
</content:encoded>
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			<item>
<title><![CDATA[Satyajit Das on the Eurozone Debt Crisis: It's Now About Germany]]></title>
<link>
			http://www.minyanville.com/business-news/the-economy/articles/germany-german-economy-eurozone-eurozone-debt/6/15/2012/id/41754</link>
<pubDate>
			Fri, 15 Jun 2012 10:35:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/business-news/the-economy/articles/germany-german-economy-eurozone-eurozone-debt/6/15/2012/id/41754</guid>
<description>
<![CDATA[It's now about Germany, not about Greece, Spain, Italy, Ireland or Portugal.

Germany is financially vulnerable. Irrespective of the course of events, it faces crippling costs.

Germany may be too late to excise the gangrenous body parts of the eurozone.

Oh, What a Lovely Crisis

To date, Germany has had a very good European debt crisis.

The German economy is one of the few economies to have grown since 2008. Unemployment is low and workers have received pay raises.

Interest rates on its government bonds, bunds, are at a record low. The low rates reflect safe-haven buying as investors flee ]]>
</description>
<content:encoded>
	<![CDATA[It's now about Germany, not about Greece, Spain, Italy, Ireland or Portugal.

Germany is financially vulnerable. Irrespective of the course of events, it faces crippling costs.

Germany may be too late to excise the gangrenous body parts of the eurozone.

Oh, What a Lovely Crisis

To date, Germany has had a very good European debt crisis.

The German economy is one of the few economies to have grown since 2008. Unemployment is low and workers have received pay raises.

Interest rates on its government bonds, bunds, are at a record low. The low rates reflect safe-haven buying as investors flee ]]>
</content:encoded>
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			<item>
<title><![CDATA[Satyajit Das: Spanish Bailout or 'Failout'?]]></title>
<link>
			http://www.minyanville.com/business-news/the-economy/articles/Spain-bailout-Euro-Spanish-banks-debt/6/11/2012/id/41621</link>
<pubDate>
			Mon, 11 Jun 2012 09:40:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/business-news/the-economy/articles/Spain-bailout-Euro-Spanish-banks-debt/6/11/2012/id/41621</guid>
<description>
<![CDATA[On April 11, 2011, then Spanish Finance Minister Elena Salgado stated: "I do not see any risk of contagion. We are totally out of this." A little over a year later, Ms Salgado and her party are no longer in power and Spain is well and truly in it.
 
After weeks of prevarication, Spain will now apply for a bailout for its banking system. Sorry it's not a "bailout." As the finance minister clarified, "What is being requested is financial assistance. It has nothing to do with a rescue."
 
It is quite a turnaround. The new Finance Minister Luis de ]]>
</description>
<content:encoded>
	<![CDATA[On April 11, 2011, then Spanish Finance Minister Elena Salgado stated: "I do not see any risk of contagion. We are totally out of this." A little over a year later, Ms Salgado and her party are no longer in power and Spain is well and truly in it.
 
After weeks of prevarication, Spain will now apply for a bailout for its banking system. Sorry it's not a "bailout." As the finance minister clarified, "What is being requested is financial assistance. It has nothing to do with a rescue."
 
It is quite a turnaround. The new Finance Minister Luis de ]]>
</content:encoded>
			</item>
			<item>
<title><![CDATA[Why India's Not Quite the Shining Star Many Hoped]]></title>
<link>
			http://www.minyanville.com/business-news/editors-pick/articles/india-india-economy-Satyajit-Das-india/5/30/2012/id/41300</link>
<pubDate>
			Wed, 30 May 2012 09:35:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/business-news/editors-pick/articles/india-india-economy-Satyajit-Das-india/5/30/2012/id/41300</guid>
<description>
<![CDATA[At the time of its independence, India was a stable and relatively open economy with high rates of economic growth and significant international trade and investment. By the 1980s, however the picture had changed. Three decades of poor economic management meant India had low growth rates, was closed to trade and investment, and prone to instability.

Despite the earnest desires of the world and India&#39;s citizens, India seems destined to never fulfill its economic potential.

India's poor economic performance was tied to the policies of its leaders. India's first Prime Minister Jawaharlal Nehru admired the Soviet Union, becoming one of ]]>
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	<![CDATA[At the time of its independence, India was a stable and relatively open economy with high rates of economic growth and significant international trade and investment. By the 1980s, however the picture had changed. Three decades of poor economic management meant India had low growth rates, was closed to trade and investment, and prone to instability.

Despite the earnest desires of the world and India&#39;s citizens, India seems destined to never fulfill its economic potential.

India's poor economic performance was tied to the policies of its leaders. India's first Prime Minister Jawaharlal Nehru admired the Soviet Union, becoming one of ]]>
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<title><![CDATA[Satyajit Das on JPMorgan's Loss, the Volcker Rule's Efficacy, and the Deeper Problems in the Banking Sector]]></title>
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			http://www.minyanville.com/business-news/editors-pick/articles/das-satyajit-das-jpmorgan-jamie-dimon/5/16/2012/id/41033</link>
<pubDate>
			Wed, 16 May 2012 12:00:00EST
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			http://www.minyanville.com/business-news/editors-pick/articles/das-satyajit-das-jpmorgan-jamie-dimon/5/16/2012/id/41033</guid>
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<![CDATA[Having been the beneficiary of the risk management failures of investment bank Bear Stearns and hedge fund Amaranth, among others, JPMorgan (JPM) appears to have made an "egregious" and "self-inflicted" hedging error. The bank would have done well to reflect on John Donne's meditation: "send not to know for whom the bell tolls, it tolls for thee."

A $2 Billion Banana Skin
 
The losses indicated are US$2 billion and may be higher. JPMorgan&#39;s share price fell around 9% (a loss of US$14 billion in market value) when the new was announced via a hastily arranged news conference. The bank also ]]>
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	<![CDATA[Having been the beneficiary of the risk management failures of investment bank Bear Stearns and hedge fund Amaranth, among others, JPMorgan (JPM) appears to have made an "egregious" and "self-inflicted" hedging error. The bank would have done well to reflect on John Donne's meditation: "send not to know for whom the bell tolls, it tolls for thee."

A $2 Billion Banana Skin
 
The losses indicated are US$2 billion and may be higher. JPMorgan&#39;s share price fell around 9% (a loss of US$14 billion in market value) when the new was announced via a hastily arranged news conference. The bank also ]]>
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<title><![CDATA[Satyajit Das on the European Debt Crisis]]></title>
<link>
			http://www.minyanville.com/business-news/editors-pick/articles/bailout-stimulus-money-printing-ltro-long/5/1/2012/id/40718</link>
<pubDate>
			Tue, 1 May 2012 14:30:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/business-news/editors-pick/articles/bailout-stimulus-money-printing-ltro-long/5/1/2012/id/40718</guid>
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<![CDATA[Recent hopes have relied on the ostensible success of the European Central Bank's (ECB) LTRO -- Long Term Refinancing Operation, more appropriately termed the Lourdes Treatment and Resuscitation Option. In December 2011 and February 2012, the ECB offered unlimited financing to European banks at 1% for three years, replacing a previous 13-month program. Banks withdrew over euro 1 trillion under the facility -- euro 489 billion in the first round and euro 529.5 billion in the second. Participation among European banks was widespread, especially in the second round with about 800 banks using the facility.
	
	The borrowed funds were used ]]>
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	<![CDATA[Recent hopes have relied on the ostensible success of the European Central Bank's (ECB) LTRO -- Long Term Refinancing Operation, more appropriately termed the Lourdes Treatment and Resuscitation Option. In December 2011 and February 2012, the ECB offered unlimited financing to European banks at 1% for three years, replacing a previous 13-month program. Banks withdrew over euro 1 trillion under the facility -- euro 489 billion in the first round and euro 529.5 billion in the second. Participation among European banks was widespread, especially in the second round with about 800 banks using the facility.
	
	The borrowed funds were used ]]>
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<title><![CDATA[Satyajit Das on China's Economic Miracle of Mirage]]></title>
<link>
			http://www.minyanville.com/sectors/emerging-markets/articles/china-china-economy-china-gdp-china/3/19/2012/id/39951</link>
<pubDate>
			Mon, 19 Mar 2012 09:45:00EST
</pubDate>
<guid isPermaLink="true">
			http://www.minyanville.com/sectors/emerging-markets/articles/china-china-economy-china-gdp-china/3/19/2012/id/39951</guid>
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<![CDATA[China's economic structure is deeply flawed and fragile. The Chinese growth story may be ending. The ability of China to support the seriously compromised global economic and financial system is overestimated.
	
	Good Times, Desperate Times
	
	In the first phase of the global financial crisis ("GFC"), China was badly hit, with growth slowing and layoffs of 20-25 million migrant workers in the export-based Guangdong province alone. In response to a large external demand shock stemming from rare synchronous recessions in the developed world, Beijing deployed massive resources to restore growth to counter the economic and social impact of the slowdown.
	
	In ]]>
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	<![CDATA[China's economic structure is deeply flawed and fragile. The Chinese growth story may be ending. The ability of China to support the seriously compromised global economic and financial system is overestimated.
	
	Good Times, Desperate Times
	
	In the first phase of the global financial crisis ("GFC"), China was badly hit, with growth slowing and layoffs of 20-25 million migrant workers in the export-based Guangdong province alone. In response to a large external demand shock stemming from rare synchronous recessions in the developed world, Beijing deployed massive resources to restore growth to counter the economic and social impact of the slowdown.
	
	In ]]>
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<title><![CDATA[Satyajit Das: What's Greek for 'No End in Sight'?]]></title>
<link>
			http://www.minyanville.com/businessmarkets/articles/Greek-debt-Greece-bailout-euro-debt/2/23/2012/id/39544</link>
<pubDate>
			Thu, 23 Feb 2012 10:40:00EST
</pubDate>
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			http://www.minyanville.com/businessmarkets/articles/Greek-debt-Greece-bailout-euro-debt/2/23/2012/id/39544</guid>
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<![CDATA[Greek Prime Minister Lucas Papademos spoke of a choice between "austerity" and "disorder." He got both, as the Greek Parliament agreed to severe budget cuts required by the European Union and outside rioters protested the plan.
 
In great dramas, subplots support the main story. The story of "hairshirts" (the Greek economic plan) and "haircuts" (the write-down of Greek debt or private sector involvement) are little more than an intriguing sideshow in the broader European debt crisis.
 
With Greece increasingly doomed, the real significance of the negotiations is that they provide a template for future European sovereign restructurings. No one buys ]]>
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	<![CDATA[Greek Prime Minister Lucas Papademos spoke of a choice between "austerity" and "disorder." He got both, as the Greek Parliament agreed to severe budget cuts required by the European Union and outside rioters protested the plan.
 
In great dramas, subplots support the main story. The story of "hairshirts" (the Greek economic plan) and "haircuts" (the write-down of Greek debt or private sector involvement) are little more than an intriguing sideshow in the broader European debt crisis.
 
With Greece increasingly doomed, the real significance of the negotiations is that they provide a template for future European sovereign restructurings. No one buys ]]>
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