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

To: russwinter who wrote (74768)	12/4/2006 1:05:01 AM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Maxed Out globaleconomicanalysis.blogspot.com Mish

To: russwinter who wrote (74768)	12/4/2006 3:52:49 PM
From: Perspective	Read Replies (1) \| Respond to of 110194

<In 1998, the yen strengthened from nearly yen130 to yen 110 to the dollar in just two days after Russia's default on panic unwinding of carry trade bets. Such a fall today could set off mass defaults, given the much larger scale of derivative contracts.> Holy cow! Is that true? I wasn't paying that much attention to currencies back then, just stocks. If so, that's an amazing statistic. And it would argue that we are in a really, really precarious position thanks to the carry trade. BC