>> Are you planning on becoming a Fed Governor?? I think you'd be
great!!!.......................<<
Are you kidding!! The stupid people couldn't first of all understand
what I was saying....since I would be actually telling them the truth
for once.
Hmmm... so you perceive yourself as having a greater ability to maintain both ROBUST economic growth and sound monetary policy???
What are your credentials??
The Asian Flu ( Contagion ) was started in the Good
Ole US of A Ron.I followed very closely at the time.Trust me.. many
in far of lands made mucho buckoo attacking the former Tigers.They reeled somewhat helplessly in the wake of the " monetary cleansing ",
So what you're saying is that Hedge Funds, taking advantage of what apparently was a necessary and desirable decline in the yen versus the dollar, should not have pursued that investment strategy, borrowing yen and then investing the proceeds into dollars??
So in effect, you're opposed to anyone, with enough liquid assets (your term) to collateralize their loan, borrowing anything in order to sell it and invest elsewhere??
Wouldn't you then eliminate short-selling of ANY stock or bond?? And without short-selling, you'd have little ability to counteract inflationary pricing of assets (again, your term). So the result would be that the yen would have risen to extraordinarily high levels as people sold all their losing long positions and converted strictly to cash, right??
Alas,.. And here I thought all along that the problem was not carry trades, but carry trades taken to the extreme and collateralized by other relatively illiquid assets. I just was simple minded enough to believe that risky actions by private banking officials, driven by the need to compete for loans without regard for thorough risk analysis, were to blame.
Hmmmm....
Btw, what's your definition of an "asset".
Is it just gold? If so, would that mean that all loans taken out by business or individuals would have to be backed by gold and not some other less worthy asset (like a home or land)??
As for Canada... good luck. Its history of monetary and economic policy certainly cannot be described at "sterling".
Regards,
Ron
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