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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (37599)	6/3/2000 8:52:00 PM
From: robnhood	Read Replies (1) \| Respond to of 42523

BGR---Here's something from Sky Blue Monthly--- He just posted an excellent article on carry trades, but I can't seem to find it now.. He does say this in his June coomentary however. <<If Gold Carry Trade is unwound, the price of gold will rise sharply. Our whole point in this issue of Sky Blue Monthly is: Will you be allowed to own gold by the government at that time? Will your gold coins be seized by the government? If you have learned anything from this issue of Sky Blue Monthly, it is: "History is not on your side".>> Surely you must admit that the Yen carry has been going on for many years, but so has the gold carry been going on. More recently the Euro has joined the pack. His point if I may concise it here is that all carry trades start out with small volume that gradually starts to rise as it creates it's own momentum and raison d'etre..It increasingly becomes self fullfilling. When it comes time to unwind the positions the sizes have become unimaginable and a rush to the doors causes a major implosion of the currency recently in favour. EG; the Baht and Won or whatever suffered the wrath a couple of years ago. The opposite side of the implosion of course is the explosion in value of the short on the other side of the carry. He describes it much better and if I come across his trestise again I will post it to you..