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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 (76637)	12/26/2006 9:01:28 PM
From: bart13	Read Replies (1) \| Respond to of 110194

This occurs in the cross-currency market at the same time. The sell is a bookkeeping entry, the Risklove is now short. He does of course have a potential obligation to buy at some point. He takes the proceeds and buys whatever. One additional thought about money supply too. Similar to how Eurodollars were the only real item to have gone away as a component of M3, the BoJ does not and has not reported anything similar to it to the best of my knowledge. So all the carry trade yen are off the publicly visible books... and will show up as and when the carry trade reverses eventually as you noted.