The Lurking Debt Disaster behind India’s Tallest Tower (FT News in Focus, 7 min listen)

(You can listen to the podcast by clicking here)

Palais Royale. It was meant to be a luxury residential tower at the heart of India’s Capital. After ten years of sporadic construction, though, it has been left a decaying shell. In this short podcast, Benjamin Parkin from the FT in Mumbai discusses India’s ‘vanity’ real estate market ambitions - which were driven by a surging population - and why it all came crashing down. Financed by shadow banks that suffer from a balance sheet maturity mismatch, developers stacked up $37bn of debt and apartments that won't sell, leaving $8bn worth of vacant housing in Mumbai. Further, in September 2018, IL&FS, India’s infrastructure finance giant defaulted, sparking a liquidity crunch across the economy and hitting real estate the hardest. When the government demonetized the Rupee and reformed the tax system, real estate money laundering halted.

Why does this matter? The troubles in the shadow banking system are rippling through India’s economy. Credit has dried up and India is suffering a liquidity squeeze - GDP growth has tanked to 5.8% in Q1 2019, the slowest in four years. The Government has now taken over IL&FS and is planning new regulations and sources of lending. 

The Myth of Meritocracy (Weekly Economics Podcast, 29 mins)

August 13, 2019

How Robots Will Feed Our On-Demand Culture (The Future of Everything by the WSJ, 14 mins)

August 13, 2019

Peak Energy, Peak Oil, and the Rise of Renewables: An Executive’s Guide to the Global Energy System (The McKinsey Podcast, 31 mins)

August 13, 2019

More Fed Rate Cuts Will Help EM Assets (P&L With Paul Sweeney and Lisa Abramowicz, 31 mins)

August 13, 2019

Billionaire Ken Fisher on Investing Principles (We Study Billionaires – The Investors Podcast, 35 mins)

August 13, 2019

Businessweek Extra – Hans Morris (Bloomberg Businessweek, 23 min listen)

August 7, 2019

Talking Politics Guide to … The Chinese Communist Party (Talking Politics, 28 min listen)

August 7, 2019

The Trade War and the Fed, with Adam Posen (Trade Talks, 20 min listen)

August 7, 2019

Top of the Morning: ‘Assessing stock-bond portfolios’ (UBS On-Air, 14 min listen)

August 7, 2019

Juliette Declercq: Powell should be fired! (Macro Voices, 14 min listen)

August 7, 2019

Could A Wealth Tax Work? (Planet Money, 22 min listen)

July 30, 2019

The Secret History of the Future: Meat and Potatoes (The Economist Radio, 36 min listen)

July 30, 2019

Michael Swaine on the ‘China is Not an Enemy’ Open Letter (Sinica Podcast, 62 min listen)

July 29, 2019

Ride Hailing, Electric Scooters, Even Flying Cars – What’s Next for the Mobility Market? (Exchanges at Goldman Sachs, 23 min listen)

July 29, 2019

Women, Men, and Hedge Funds (The Indicator, 11 min listen)

July 23, 2019

(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)

Sign up to the Macro Hive newsletter here:

Leave a Reply

Your email address will not be published. Required fields are marked *

Sign Up For the Free Newsletter