Satyajit Das Concepts

Traders, Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives

by Satyajit Das · 15 Nov 2006 · 349pp · 134,041 words

Satyajit Das is an international expert in the dazzling world of ﬁnancial derivatives and has 25 years’ experience in the ﬁnancial markets. He has had a foot

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-author (with Jade Novakovic) of In Search of the Pangolin: The Accidental Eco-Tourist (2006, New Holland), a unique travel narrative focused on eco-tourism. SATYAJIT DAS No money is ever really made in ﬁnancial markets. Markets merely transfer wealth. As to how to make money? Well, it is basically theft, misrepresentation

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a fascinating read guaranteed to make you think. BUSINESS Visit our website at www.pearson-books.com An imprint of Pearson Education traders13.indd 1 SATYAJIT DAS “I had been in derivatives for over 25 years. Many traders hadn’t been born when I stumbled accidentally into the arcane world of derivatives

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.co.uk DAS_A01.QXD 5/3/07 8:01 PM Page vi Traders, Guns & Money Knowns and unknowns in the dazzling world of derivatives Satyajit Das DAS_A01.QXD 5/3/07 8:01 PM Page vii PEARSON EDUCATION LIMITED Edinburgh Gate Harlow CM20 2JE Tel: +44 (0)1279 623623 Fax: +44

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(0)1279 431059 Website: www.pearsoned.co.uk First published in Great Britain in 2006 © Satyajit Das 2006 The right of Satyajit Das to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988

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support and encouragement over the years. At least they will now have a better idea of what I have been doing for all these years. Satyajit Das Sydney, Australia February 2006 DAS_A01.QXD 5/3/07 8:01 PM Page xvi As we know, these are known knowns. There are things

Extreme Money: Masters of the Universe and the Cult of Risk

by Satyajit Das · 14 Oct 2011 · 741pp · 179,454 words

side.” —James Pressley, Bloomberg “Long before the 2008-09 credit crisis and collapse, one of the strongest warnings about the dangers of derivatives came from Satyajit Das.... it reads more like a crime novel than a financial book.” —Barry Ritholtz “...a scalpel of a book that pulls back the skin on the

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derivatives market ...There were several times I laughed out loud....” —www.runningofthebools.typepad.com Extreme Money Masters of the Universe and the Cult of Risk Satyajit Das Vice President, Publisher: Tim Moore Associate Publisher and Director of Marketing: Amy Neidlinger Executive Editor: Jim Boyd Editorial Assistant: Pamela Boland Development Editor: Russ Hall

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: Kristy Hart Project Editor: Jovana San Nicolas-Shirley Proofreader: San Dee Phillips Indexer: Larry Sweazy Senior Compositor: Gloria Schurick Manufacturing Buyer: Dan Uhrig © 2011 by Satyajit Das This book is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services or

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, S.A. de C.V. Pearson Education—Japan Pearson Education Malaysia, Pte. Ltd. Library of Congress Cataloging-in-Publication Data Das, Satyajit. Extreme money : masters of the universe and the cult of risk / Satyajit Das. p. cm. ISBN 978-0-13-279007-9 (hbk. : alk. paper) 1. Money. 2. Finance. I. Title. HG221.D257

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Hide Built to Fail End of Ponzi Prosperity? Losing the Commanding Heights Zen Finance Unknown Unknowns Epilogue: Nemesis Notes Select Bibliography Index About the Author Satyajit Das is an international specialist in the area of financial derivatives, risk management, and capital markets, with a global reputation. Das presciently anticipated many aspects of

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Wright (2000) Valuing Wall Street—Protecting Wealth in Turbulent Markets, McGraw-Hill, Illinois. 16. Institutional Investor (4 February 1987). Reproduced with permission from BP. 17. Satyajit Das “Key trends in Treasury management” (May 1992) Corporate Finance: 39. 18. Ron Chernow (1993) The Warburgs, Vintage Books, New York: 647–54. 19. Ibid: 653

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Street’s Gamblers Broke Capitalism, Allen Lane, London. Lawrence A. Cunningham (2009) The Essays of Warren Buffett: Lessons for Investors and Managers, John Wiley, Singapore. Satyajit Das (2010) Traders Guns and Money: Knowns and Unknowns in the Dazzling World of Financial Derivatives, FT Prentice Hall, London. Glyn Davies (2002) A History of

The Age of Stagnation: Why Perpetual Growth Is Unattainable and the Global Economy Is in Peril

by Satyajit Das · 9 Feb 2016 · 327pp · 90,542 words

2015 Published 2016 by Prometheus Books The Age of Stagnation: Why Perpetual Growth Is Unattainable and the Global Economy Is in Peril. Copyright © 2015 by Satyajit Das. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means

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4 3 2 1 The Library of Congress has cataloged the printed edition as follows: Names: Das, Satyajit, author. Title: The age of stagnation : why perpetual growth is unattainable and the global economy is in peril / Satyajit Das. Description: Amherst, NY : Prometheus Books, 2016. | Includes bibliographical references and index. Identifiers: LCCN 2015037561| ISBN 9781633881587

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Global Bubbles and Synchronised Meltdowns, FT Prentice Hall, 2010. William D. Cohan, House of Cards: How Wall Street's Gamblers Broke Capitalism, Allen Lane, 2009. Satyajit Das, Traders, Guns, and Money: Knowns and Unknowns in the Dazzling World of Financial Derivatives, FT Prentice Hall, 2006. ——, Extreme Money: The Masters of the Universe

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in the Twenty-First Century, Belknap Press, 2014. Richard Wilkinson and Kate Pickett, The Spirit Level: Why Greater Equality Makes Societies Stronger, Bloomsbury Press, 2011. Satyajit Das is a globally respected former banker and consultant with over thirty-five years’ experience in financial markets. He presciently anticipated, as early as 2006, the

Fool's Gold: How the Bold Dream of a Small Tribe at J.P. Morgan Was Corrupted by Wall Street Greed and Unleashed a Catastrophe

by Gillian Tett · 11 May 2009 · 311pp · 99,699 words

popular literature on finance and the recent credit crunch, including (but not exclusively) Tavakoli, J., Structured Finance & Collateralized Debt Obligations (John Wiley & Sons, 2003, 2008); Das, Satyajit, Traders, Guns & Money (Pearson, 2006); Morris, Charles, The Trillion Dollar Meltdown (Public Affairs, 2008); Bookstaber, Richard, A Demon of Our Own Design (Wiley, 2007); Bernstein

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’s team furtively worked: For details of how this structure worked see “The J.P. Morgan Guide to Credit Derivatives,” Risk Publications, 1999. See also Das, Satyajit, Credit Derivatives (Wiley, 2005), for a very extensive discussion of the significance of BISTRO, in relation to the structures that proceeded, and the subsequent impact

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.derivativesstrategy.com/magazine/archive/1997/0797rtbl.asp. Four: The Cuffs Come Off BISTRO-style CDS trades quickly took off: For general discussions of that, see Das, Satyajit, Credit Derivatives. “The pace of change in the way banks manage credit risk”: Asarnow, Elliot, The Journal of Lending and Credit Risk Management (September 1998

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Duyn, Francesco Guerrera, Jennifer Hughes, Sam Jones, Michael Mackenzie, David Oakley, Anousha Sakoui, Saskia Scholtes, Henny Sender, Gary Silverman, and Peter Thal-Larsen. Janet Tavakoli, Satyajit Das, and Arturo Cifuentes were some of the few mavericks who were willing to speak openly to FT about the looming credit dangers at an early

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stage. In various stages of writing, Adam Ridley, Charles Morris, Keith Hart, Henry Fajemirokun, and Satyajit Das read various drafts and offered extremely helpful comments. Henny Sender also offered very kind logistical support. Pascal Spreen, Shannon Gitlin, and Madhavi Pulapaka conducted research

Crisis Economics: A Crash Course in the Future of Finance

by Nouriel Roubini and Stephen Mihm · 10 May 2010 · 491pp · 131,769 words

King, Manu Kumar, Jens Nystedt, Robert Kahn, Chris Whalen, Joshua Rosner, Barry Ritholtz, Yves Smith, Wolfgang Munchau, Gillian Tett, Ian Bremmer, Michael Pettis, Steve Drobny, Satyajit Das, Katerina Alexandraki, Daniel Alpert, Charles Morris, Richard Bookstaber, Edward Chancellor, and Walter Molano. Former policy makers and other policy think-tank scholars with whom I

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We Need Derivatives Regulation,” New York Times, October 7, 2009, online at http://dealbook.blogs.nytimes.com/2009/10/07/dealbook-dialogue-lynn-stout/; also Satyajit Das, Traders, Guns, and Money: Knowns and Unknowns in the Dazzling World of Derivatives (Upper Saddle River, N.J.: Financial Times Press, 2006). 200 some sensible

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to annual meeting of the American Economic Association, January 3, 2010, http://www.federalreserve.gov/newsevents/speech/bernanke20100103a.pdf. 214 standard industry guide to derivatives: Satyajit Das, The Das Swaps & Financial Derivatives Library (Hoboken, N.J.: John Wiley and Sons, 2006). 215 a bewildering array of regulatory bodies: See Richard H. K. Vietor

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. Crotty, James. “Structural Causes of the Global Financial Crisis: A Critical Assessment of the ‘New Financial Architecture.’ ” Cambridge Journal of Economics 33 (2009): 563-80. Das, Satyajit. Traders, Guns, and Money: Knowns and Unknowns in the Dazzling World of Derivatives. Upper Saddle River, N.J.: Financial Times Press, 2006. Dawson, Frank Griffith

The Coming of Neo-Feudalism: A Warning to the Global Middle Class

by Joel Kotkin · 11 May 2020 · 393pp · 91,257 words

in a way reminiscent of the medieval nobility. “The new feudalism is like the older model, with class, privilege and wealth still highly influential,” writes Satyajit Das in the Independent.4 “Experts” and “Problems” The oligarchs and a privileged clerisy might be seen as fulfilling the role of a ruling “expert” class

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.com/world/2014/jul/28/china-more-unequal-richer; David S.G. Goodman, Class in Contemporary China (Cambridge: Polity Press, 2014), 2–3, 45. 14 Satyajit Das, “Despite appearances, the idea of social progress is a myth,” Independent, July 30, 2017, http://www.independent.co.uk/voices/despite-appearances-the-idea-of

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Everyone Else in the Dust, Why That Is a Problem, and What to Do About It (Washington, D.C.: Brookings Institution Press, 2018), 8. 4 Satyajit Das, “Despite appearances, the idea of social progress is a myth,” Independent, July 30, 2017, https://www.independent.co.uk/voices/despite-appearances-the-idea-of

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Communist Manifesto, The Confucianism; revival of Congo (Belgian) Coontz, Stephanie Corbyn, Jeremy Crassweller, Robert D. Cromwell, Oliver Crusades Curry, Judith D’Annunzio, Gabriele Darwin, Charles Das, Satyajit data collection; in China Deaton, Angus DeForest, Lee deindustrialization, de la Court, Peter Deloitte Democratic Party; and Hollywood; and journalists; and Sanders Denmark Desai, Rajiv

13 Bankers: The Wall Street Takeover and the Next Financial Meltdown

by Simon Johnson and James Kwak · 29 Mar 2010 · 430pp · 109,064 words

; the dealer would charge a large fee, break the transaction into its component parts, and hedge them individually at a much lower cost. Derivatives expert Satyajit Das has outlined the abusive economics of these transactions. Describing the mechanics of a typical inverse floater, he wrote, “Chairman Greenspan might wax lyrical about the

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.S.C.O.: Blood in the Water on Wall Street (New York: W. W. Norton, 2009), 59. For another account of the derivatives industry, see Satyajit Das, Traders, Guns and Money: Knowns and Unknowns in the Dazzling World of Derivatives (Harlow, England: Prentice Hall, 2006). 11. Bank for International Settlements, Semi-Annual

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Flying: Can Mathematical Theories Destroy the Financial Markets? (Hoboken, NJ: Wiley, 2009), xiii. 73. Semiannual OTC Derivatives Statistics, supra note 15, at Table 19. 74. Satyajit Das, Traders, Guns and Money: Knowns and Unknowns in the Dazzling World of Derivatives (Harlow, England: Prentice Hall, 2006), 47. For an explanation of a leveraged

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Kenneth S. Rogoff. This Time Is Different: Eight Centuries of Financial Folly. Princeton: Princeton University Press, 2009. Trading, Derivatives, and the Culture of Wall Street Das, Satyajit. Traders, Guns and Money: Knowns and Unknowns in the Dazzling World of Derivatives. Harlow, England: Prentice Hall, 2006. Lewis, Michael. Liar’s Poker: Rising Through

The Black Box Society: The Secret Algorithms That Control Money and Information

by Frank Pasquale · 17 Nov 2014 · 320pp · 87,853 words

methods and automation have vastly expanded the sector’s capacity to bluff those who are supposed to manage risk and detect deception. As former trader Satyajit Das memorably puts it, “No trader making $1 million + a year is going to take questions from an auditor making $50,000 a year”— especially when

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); Henwood, Wall Street: How it Works; Robert Kuttner, The Squandering of America: How the Failure of Our Politics Undermines Our Prosperity (2010), 112, 231. 164. Satyajit Das, Traders, Guns and Money: Knowns and Unknowns in the Dazzling World of Derivatives (Great Britain: FT Press, 2006), 144. 165. Daniel Carpenter, Reputation and Power

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, 41, 56, 114, 136, 140, 149, 153, 186, 190–191, 194; selling of, 30, 33 cybersecurity, 184 Daly, Lew, 85 dark pools, 128 darknet, 146 Das, Satyajit, 136 data breach, 29–30, 53, 146 Davies, Will, 109 de Soto, Hernando, 101, 138 default, 87, 89, 148, 151; data systems to help detect

SUPERHUBS: How the Financial Elite and Their Networks Rule Our World

by Sandra Navidi · 24 Jan 2017 · 831pp · 98,409 words

trend reverses.4 As finance takes up an increasingly larger share of GDP, investment in the real economy falls.5 The author and former banker Satyajit Das notes that “[at] its peak, the finance industry generated 40 percent of corporate profits.”6 As a result finance decoupled from the economy, and while

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Institute, University of Massachusetts Amherst, Working Paper Series Number 149, October 2007, http://scholarworks.umass.edu/cgi/viewcontent.cgi?article=1120&context=peri_workingpapers. 6. Satyajit Das, The Age of Stagnation: Why Perpetual Growth Is Unattainable and the Global Economy Is in Peril (New York: Prometheus Books, 2016) 598, Kindle edition. 7

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, 63, 71 Robin Hood Foundation and, 76 spouse of, 135 Dallara, Charles, 27, 107, 131–133 Dallara, Peixin, 131–133 D’Andrea Tyson, Laura, 185 Das, Satyajit, 210 Davos access to, 113 attendees of, 2, 4, 113–114 central bankers at, 33 critics of, 95 description of, 1–4, 96, 112–116

Disaster Capitalism: Making a Killing Out of Catastrophe

by Antony Loewenstein · 1 Sep 2015 · 464pp · 121,983 words

needed. In particular, I was struck by how often people felt like slaves to an economic system over which they had no control. Financial consultant Satyajit Das writes that “the rule of extreme money is that everybody borrows, everybody saves, everybody is supposed to get wealthier. But only skilled insiders get richer

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, Private Empire: ExxonMobil and American Power, Penguin, New York, 2012. Cromwell, David, Private Planet: Corporate Plunder and the Fight Back, Jon Carpenter Publishing, Oxfordshire, 2001. Das, Satyajit, Extreme Money: The Masters of the Universe and the Cult of Risk, Portfolio, Melbourne, 2011. Dwyer, Paul, The Bougainville Photoplay Project, Currency Press, Sydney, 2010

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. 43 Crockett, Greg 204–5 Crossbar 204–5 Cuba 122 cultural sensitivity 21 Daily Mail 235 Daily Telegraph (Sydney newspaper) 172 Damana, Chris 184–5 Das, Satyajit 309 Daveona, Lawrence 177–8 David (Serco source) 292 Davis, Raymond 57, 331n73 Davis, Troy 199 Davos conference, 2015 2–3 debtocracies 99 Defence Logistics