SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Dwight Taylor who wrote (13411)1/22/1998 9:53:00 AM
From: vegetarian  Read Replies (1) | Respond to of 94695
 
>>If so, couldn't one borrow a mil at 1/2%, for a cost of $5000, invest in US bonds at 5 1/2%<<

That is called "yen carry trade" and is being done.



To: Dwight Taylor who wrote (13411)1/22/1998 1:30:00 PM
From: GROUND ZERO™  Respond to of 94695
 
Ben,

Yes, and this is just what Japan has been doing and why they buy our bonds. This is the problem and why they mentioned a few months ago about selling their bond holdings, they just got caught with their hands in the cookie jar.

GZ