Sudip Bandyopadhyay’s Blog

In the Hindi blockbuster movie Gajini, the lead actor suffers from a disastrous aliment “Short-term Memory Loss”.  The current market euphoria across the world reminds me of a similar mental state for investors across  asset classes who are unable to grasp the toughest lessons of last year’s global economic crisis.  The crisis was predominantly about [...]

It looks as though the international financial crisis has now given way to the international economic crisis that it caused.  Japan gives the best evidence.  Japan’s banks did not, as a rule, load up on toxic US mortgage debt.  Yet the crisis affected the country deeply.  For many years while leverage was easily available, the [...]

“History demonstrates conclusively that a modern economy cannot grow if its financial system is not operating effectively.” So said Ben Bernanke, Federal Reserve chairman, last  week in London.  It sounds obvious, but it is also fundamental - and for three reasons. First, banks allow people to pay each other easily - without them commerce would [...]