Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
Posted on 11/14/2009 7:36:23 AM PST by TigerLikesRooster
Dollar carry trade could herald the next global crisis, analysts warn
Leo Lewis, Asia Business Correspondent
The global economy could be poised for the creation of a potentially explosive dollar carry trade, analysts said yesterday.
The trade allows investors to borrow dollars at near-zero interest rates, which they use to fund asset-buying sprees around the world, and has been possible since the collapse of Lehman Brothers last year and the extreme monetary response to its aftermath.
The warning was issued at the Apec summit of Asia Pacific leaders in Singapore and came after a variety of assets started to display bubble-like patterns of inflation: everything from gold and copper to fine wine and Hong Kong penthouses.
As the carry trade grows more popular it could add more downward pressure to the already falling dollar, particularly if the “carried” — borrowed — dollars are immediately sold to buy non-dollar denominated assets in China or Singapore.
Analysts believe that it was the sudden unwinding of the yen carry trade — immense pockets of investment funded by cheaply borrowed yen — that sent the destructive ripples of the Wall Street crisis around the world last autumn.
(Excerpt) Read more at business.timesonline.co.uk ...
Ping!
Obama fiddles while the dollar burns. And he smiles.
Trading Monopoly money for real value.
Thanks for the ping nothing is done by accident they are intentionally destroying the dollar what better way to bring about a new world order of totalitarian control then to break the American middle class and bring them down to the level of all the others sharing the misery because that is what socialism does people share the misery the leaders share the gains.
The dollar carry trade is already running full tilt. It’s driving foreign stocks, gold, commodities, and further weakening the dollar.
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