Article

2010-03-08 China-Japan-Koreas

The Mother of All Carry Trades has Started

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Posted by tipper 2010-03-08 06:44|| || Front Page|| [11139 views ] Top

#1 Sorry, I'm not smart enough to draw any conclusions from this brief article. Japan's economy and the Yen are in trouble?

Posted by Bobby 2010-03-08 08:44|| 2010-03-08 08:44|| Front Page Top

#2 Nah, the articles are too brief and not well written so that they explain what's going on.

The article next to the one posted is also equally cryptic and provacative:
It is because the fastest growing export of the Western banking industry (and governments) is now fraud.

Posted by JohnQC 2010-03-08 09:56|| 2010-03-08 09:56|| Front Page Top

#3 This article is an invitation to get hosed....

the lure of easy money, will bop you on the head...

unless your a princple, this is no trade for anyone hanging out here.

Posted by Thor Spegum8770 2010-03-08 11:39|| 2010-03-08 11:39|| Front Page Top

#4 the articles are too brief and not well written so that they explain what's going on. That is true about a lot of media and internet coverage about the economy.
People who do know what's going on in any specialty seem either unwilling or incapable of conveying the gist of their understanding, no matter how many words they emit.

Posted by Anguper Hupomosing9418 2010-03-08 14:36|| 2010-03-08 14:36|| Front Page Top

#5 It's intended for an audience learned in the FOREX market. Basically you hold a currency to make the interest off it while hedging with a currency that typically moves diametrically to it. There are several classic carry trade pairs, nothing of consequence to the general public, just another expample of people playing the market and thinking that "I can't lose on this one!"

Posted by bigjim-CA 2010-03-08 14:55|| 2010-03-08 14:55|| Front Page Top

#6 It will be 4 years at the current rate before supply of Japan gov debt exceeds Japan savings, and net overseas borrowing begins. An awful lot can happen in 4 years.

In hindsight, all those Japan 'stimulus measures' to stop deflation, particularly the capital works were a colosal mistake. But then I think deflation is a good thing.

Posted by phil_b 2010-03-08 16:34|| 2010-03-08 16:34|| Front Page Top

#7 Wonderful. I think we should all become traders seeking to arbitrage the state. Send 49% of the population overseas, make another 49% into servants to gazillionaires + foundation/nonprofit workers + public sector employees, and let the rest flip assets and trade carbon credits and currencies and such.

Very efficient.

Posted by lex 2010-03-08 23:41|| 2010-03-08 23:41|| Front Page Top

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