Das: 3 ingredients for a financial crisis

Satyajit Das, author of “A Banquet of Consequences,” sees a crisis brewing in financial markets. "There's a lot of kindling, and people are walking around flicking lighters." Das says there are three basic ingredients required to cook up a crisis. 1) Overvaluation. "You can take PE ratios, you can look at market cap relative to an economy, they're all overvalued, and they're all assuming much greater levels of growth than we've seen." 2) Debt. "Debt today is $60 trillion more than it was, globally, in 2009. As a percentage of GDP, it's 17% up," and 3) A banking problem. "Today, there's more than $3 trillion of worth of bad loans sitting around." Back in 2007, it was a ‘mere’ $1 trillion worth of subprime loans that triggered the GFC. Watch the full video below to find out what the triggers for the next crisis could be.