Hi Maurice, <<<I am just trying to figure out why I am not taking advantage of the opportunity to borrow Yen and not pay back.>
Same as me; confusion. Confucian say "NO" when issues are murky. Yen is murky and the bosses of Yen might entrap naive "steal the yen" proponents>>
The only rational reason I have is that the folks who are in a position to borrow Yen, and that includes the big financial houses, the Japanese themselves, and some global private investors, uniformly believe that whatever they can buy with the 'cheaply' 'stolen' or borrowed Yen, will all go down in value, effectively making the 1.25% borrowing rate of Yen a 25% hit on NAV, be they invested in be they Hawaiian real estate, New York equity, European bonds, Swiss watches, or New Zealand forests.
Deflation is much scarier than inflation, and inflation is scary enough.
Chugs, Jay |
