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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Perspective who wrote (104497)11/18/2009 10:38:37 AM
From: Skeeter Bug  Respond to of 116555
 
>>Despite the massive carry trades at work there, it doesn't appear that either event produced the kind of significant economic turmoil that I would have expected.<<

1. some argue the yen carry trade played a significant role in the collapse of 2008.
2. check out the volatility in the japanese stock market over the last 2 decades.
3. japan has been a net saver and exporter, which helped a lot. america is a massive net borrow and massive net importer.
4. just observe what is happening with the dollar carry trade... if allowed to continue, you could see all time highs in all the markets with a collapsing economy. is there any way that ends well? i see currency collapse or market collapse as the only two end games.