Mortgaging hurt the economy most?

Nicola Horlick, CEO of Bramdean Asset Management, spoke to Anamika Butalia on the economic crisis and how the East must learn from the mistakes of the West.

How badly did the Madoff scam hit you?
The scandal has been exaggerated. We lost $20 million but that is not such a big amount. An arm of the company is into currency exchange and honestly, in that quarter alone, the function brought in an amount that made the loss seem insignificant. Of course, I was aghast at first when the scandal broke out.

How bad has the downturn been?
The US, the UK and Spain have been the worst hit. Banks continued to encourage mortgaging not realising that the illusion created would lead to a painful contraction. The East, however, will continue to grow.

Won't the ripple effect touch the East, too?
Brazil, China and India are being looked at for long-term investments. To revive the western economies, we have to depend on those who are able to produce stimuli and growth-which is why I doubt whether a growing economy will be affected.