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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: benwood who wrote (28173)	3/8/2005 8:31:09 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

What JW is arguing would be clearer to me at least with a concrete example -- I'm only assuming that he can achieve the 30x leverage as he said with a future's contract. I've no doubt that if somebody removes the apparent risk out of the system (Greenie & US interest rates, for a while at least) that one can exploit that. Somebody will get blown up at some point though, showing that the true risk was still in the system somewhere else. You can achieve 30-1 without involving the YEN! What the F does the YEN have to do with it? You want 30-1 borrow short and lend long. Period. Borrowing YEN to achieve it and losing 20% on the process seems stupid to me. It also assumes (which I refuse to do) that someone managed to not lose their asses on hedges. IF they managed that then they had the same FN return as if they just borrowed US$ in the first place! Mish