Lars Seier worried after gloomy week for Danish economy: ‘It looks quite serious’

Interest rates are skyrocketing, shares have taken a wild dive, rich man Karsten Ree has lost a billion, while the Ministry of Finance is calling for calm and promising growth.

It can be difficult to keep up with what is happening to the economy right now. Are we heading for a new crisis? BT has asked the financier and Saxo Bank founder, Lars Seier Christiansen, about his bid.

“The situation looks quite serious,” says the former bank director after a week that has sent both the Danish and American shares out on a major downturn, while both interest rates and inflation rise and rise.

“There is a lot of debt in the economy again and again, inflation is rising, but it is difficult for companies to pass on to customers via higher prices, because purchasing power is impaired by higher energy and commodity prices,” explains Lars Seier Christensen, who does not dare to predict certainty whether we are heading for a new crisis:


Lars Seier in front of his castle in Switzerland.

Lars Seier in front of his castle in Switzerland.
Photo: Silla Bakalus

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‘Whether it will be a’ full strength ‘crisis is difficult to say, but it is certainly a possibility because the financial grips that central banks have long used – and which are part of the reason why we are here today – is being depleted, “he says, referring to interest rates, which central banks have kept surprisingly low for several years.

Many economists have given their opinion on what to do, and most agree that the towering inflation, which has reached 6.7 percent, which is the highest in 40 years, must be slowed down if it is not to go completely. wrong.

Chief economist at Børsen Steen Bocian believes that higher interest rates – how uncomfortable it may sound to many people – may be the only way forward to curb inflation. It is about giving consumers less money in their hands.

And Lars Seier Christensen does not disagree with that – although he thinks it is a difficult road to go:


Lars Seier with his wife, Yvonne Seier Christensen.

Lars Seier with his wife, Yvonne Seier Christensen.
Photo: Bax Lindhardt

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“In principle, I agree with Steen, but it will be difficult because at the same time it will slow down economic growth completely. It is difficult to be a central bank right now, “he writes in a text message to BT

While many economists say that we are in the midst of a recession, the Ministry of Finance came with surprisingly positive news on Wednesday – namely an economic forecast that promises growth despite war and inflation. Among other things, the ministry has raised the expectation that house prices will rise more this year than first expected, writes Finance. While the expected increase for the year in December was 3.3 percent, it sounds new at 4.8 percent this year.

However, the Ministry of Finance’s forecast does not remove Lars Seier Christensen’s concern:

“Political announcements are in this context quite academic, as it is the real world that decides this – you can not speak out of it,” says Lars Seier Christensen, who can be pleased that he does not have experienced a large fall in equities.


Lars Seier in front of his castle in Switzerland.

Lars Seier in front of his castle in Switzerland.
Photo: Silla Bakalus

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“I do not really invest in listed shares, so I am not directly affected by it,” he says, adding that he will probably experience being affected in other areas:

‘Of course, the various companies I have outside the market will also be affected by a general downward adjustment in prices, although it is difficult to assess the extent. In addition, I have a large exposure in the crypto world in general, which is also affected, so I have no doubt given back some of the big gains that this market has otherwise delivered over the last 24 months. But it is difficult to put numbers on. “

He believes that the most important thing right now is for inflation to come under control. .

“Economists always disagree, so I do not pay much attention to them,” he says, adding:

“But inflation, especially in commodities and logistics, is worrying, no doubt, as it affects companies broadly and they find it difficult to simply pass on higher prices to customers.”

“In addition, the market has been overvalued for a while, and it has to be corrected from time to time. But it also offers great opportunities, because some companies and assets will go from overvalued to undervalued in such situations. So the important thing is to focus on projects and companies that contribute with real value and good future prospects – such processes typically reveal what has substance and what does not have, “he says.

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