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

To: sammy™ -_- who wrote (62268)	5/30/2006 10:15:57 PM
From: UncleBigs	Read Replies (2) \| Respond to of 110194

even if Japan raises rates to 2%, they will still be the lowest cost currency in the world. I doubt this results in the unwind of the yen carry on its own. In fact, all else being equal, the carry traders would probably respond by increasing their positions. However, all else isn't equal. The unwind will occur because the underlying securities are deteriorating rapidly. This will trigger a risk reduction trade. It's happening now.