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To: AmericanInTokyo
A lot of this is reversal of the "carry trade".

During the 'lost decade', Japan did what we are doing now - lent out money at zero interest. Many people borrowed this money and invested it in other, bubble areas outside of Japan, like the US stock market. Now the yen is going up, those who need to pay back those loans are scrambling to do so fast, using dollars available from the Fed at zero interest.

9 posted on 11/26/2009 7:20:30 AM PST by expatpat
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To: expatpat

yep.


10 posted on 11/26/2009 7:23:31 AM PST by AmericanInTokyo ( Palin's new autobiography: "Going Rogue". Obama's new autobiography: "Going Khmer Rouge".)
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