![\"hendry-sachs\"](\"http:\/\/static.businessinsider.com\/image\/4bfe8b037f8b9ad5354b0300\/hendry-sachs.jpg\")
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The European banking system is in crisis, says Hendry.<\/p>\n
“I would recommend you panic.”<\/p>\n
The hedge fund manager of Eclectica Management went on BBC Newsnight last night to play pessimist against Jeffrey Sachs, an economist from Columbia University.<\/p>\n
Of course<\/a> the two get into a fight. It’s awesome.<\/p>\n At first Hendry is talking quietly and his manner is worryingly subdued but wait just a minute. He starts going after Sachs at 2:38.<\/p>\n “When you bring on a professor and when you bring on a politician, they are unaccountable. Jeffrey’s wrong, you know what? He’ll survive and tenure.<\/strong> I’m wrong, I go bankrupt.”<\/p>\n Then Jeffrey defends himself a little bit, says no one should jump to the conclusion that all is lost, and Hendry literally jumps on him. (4:50)<\/p>\n “I don’t know,”<\/strong> says Hendry, “because, was Jeffrey skiing two months ago? <\/strong>I was working, Gillian (Tett, who was also on the show) was working. So we can tell you about the real world.”<\/p>\n It’s so offensive that the host has to jump in and say, “Now that’s just a low blow.”<\/p>\n (Meanwhile, Gillian Tett is loving this, grinning from ear to ear.)<\/p>\n Then Jeffrey, who doesn’t want to let some other guy fight his fight for him, warns Hendry:<\/p>\n “Please watch your language, it’s just ridiculous.<\/strong> Watch your rhetoric a little bit.”<\/p>\n Seriously, says Hendry. It’s time to worry. Panic.<\/p>\n “Banks today are refusing to lend to each other. Bank share prices are collapsing. We have no ability to gauge the credit-worthiness of the banking system.”<\/p>\n “I say, let’s purge this system of its rottenness,” recommends Hendry. “Let’s take on a recession. It’s going to be tough. People are going to lose their jobs.”<\/p>\n “The banking sector is responsible for gross folly,” he says. The solution is just, “Don’t pay them. Don’t reward folly.”<\/p>\n “We can spread this over 20 years or we can get rid of it over 3 years… You make a mistake, you pay for it.”<\/p>\n Of course remember that Hendry is shorting the crap out of Greece<\/a> and the European banking crisis. He’s a big proponent of speculation and shorting, so he hates bailouts and would love massive failure.<\/p>\n \n