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naked capitalism: Roubini Predicts “Mother of All Carry Trade Unwinds”
Yahoo! Finance: Tech Ticker: Roubini: The New Dollar Carry-Trade Is a Disaster in the Making
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Next #financial #bubble: #Roubini sees "mother of all carry trades" as #dollar drops http://tinyurl.com/yzb6gb5 43 hours ago |
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"USD, has become the mother of all carry trades" Roubini... RT @ carlbadder ... faces an inevitable bust. http://bit.ly/2wFHka 8 days ago |
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Roubini on 'Mother of all carry trades faces bust' http://bit.ly/3qbeIF 12 days ago |
Roubini Predicts “Mother of All Carry Trade Unwinds”
naked capitalism —
... bubble bursts?”
In other words, everyone seems to be in on this bubble except most borrowers in the real economy. But that wasn’t the main objective…it was to reflate asset prices to save the global banking system…by rerunning the same movie that drove it off the cliff in the first place (well, this is a sequel, so there are some minor plot changes, like the dollar rather than the yen as the basis for the carry trade).
From Roubini in the Financial Times:
Since March there has been a massive rally in all sorts of ...
Pink picks
FT Alphaville —
... Central bankers all over the world are asking themselves the same question: when is the time to start the Big Exit? It surely cannot be now, or can it? I suspect the right answer is: perhaps not now, but earlier than you think, writes FT columnist Münchau. Nouriel Roubini: Mother of all carry trades faces an inevitable bust While the US and global economy have begun a modest recovery, asset prices have gone through the roof since March in a major and synchronised rally, writes economist Roubini . While asset prices were falling sharply in 2008, when the dollar was rallying, ...
Roubini: The New Dollar Carry-Trade Is a Disaster in the Making
Yahoo! Finance: Tech Ticker —
... to the bust, the Japanese yen was the favored currency behind the so-called "carry trade." Traders would borrow a cheap currency, buy risky assets, and then profit. It was basically that easy. But the cheap yen has been replaced by the cheap dollar, so that everything priced in dollars has soared like crazy. And just as the dollar is showing some signs of life, and just as the market shows an inlking of a breakdown, here comes Roubini warning about the coming bust of the carry trade. FT : The reckless US policy that is feeding these carry trades is forcing other countries to ...
Monday morning links
The Mess That Greenspan Made —
... - Research Recap ECONOMY U.S. employment losses expected to moderate - MarketWatch October retail sales look to capture fall momentum - Reuters Seriously, Stop Worrying About Hyperinflation - The Atlantic Ford’s Plan to Cut Costs Falls Short in Union Vote - NY Times As jobs vanish, factory towns slow to see stimulus - AP Supply-Side Ideas, Turned Upside Down - NY Times INTERNATIONAL Mother of all carry trades faces an inevitable bust - FT UK manufacturing grows ...
A ticking time-bomb or the mother of all carry trades?
FT Alphaville —
... trading environment, the second half of the week should remain volatile as well as we will have to digest as well the comments from Trichet on Thursday and the non-farm payroll on Friday. The level of speculative length in the oil commodities is extreme and these positions will require a further weakening of the Dollar Index to be sustained. But Jakob is not alone on making the point. On Monday, none other than Nouriel Roubini, aka Dr. Doom, was making much the same argument in an FT opinion piece . Roubini, though, had dubbed it ‘the mother of all carry trades’ saying: Let ...
Bullish data, recoveries, crashes and the psychology of forecasting redux
naked capitalism —
... But, with Nouriel Roubini’s recent FT Op-Ed, this is over. Roubini decried the easy money policy he believes is leading to a dollar carry trade and an increase of risk appetite across a wide variety of asset classes. He believes this experiment will not end well. I share his view. ...
Assorted links
Marginal Revolution —
1. WEIRD subjects and their importance for social science.
2. Rational overoptimism.
3. Andrew Gelman will have a second blog. I don't yet understand the forthcoming principle of individuation across the two blogs.
4. London Review of Books, full issue on-line.
5. Nouriel Roubini on the new carry trade.
6. From Chris F. Masse, nextbigfuture.com, a new science blog. Here's their update on space elevators.
7. Will Doug Holtz-Eakin lose his health insurance?
8. ...
Roubini: Mother of All Carry Trades Faces Bust
Manhattan Real Estate: New York City Real Estate Tips —
A: As discussed right here 3 days ago when talking out loud about the extreme positive carry trade that is on what may happen if that reverses!! Professor Roubini gets into details.
Professor Nouriel Roubini discusses, " ...
More bubble talk from the Financial Times
The Mess That Greenspan Made —
... earlier today. The British business daily seems to be full of "bubble stories" in recent weeks, just a few days ago publishing Nouriel Roubini's Mother of all carry trades faces an inevitable bust. ...
El-Erian: Short-term stability at the cost of longer-term instability?
FT Alphaville —
... would be considered to assess whether inflationary pressures remain contained. The FOMC is trying to strike a very, very delicate balance; a major question is whether markets and, more importantly, the real economy will be appropriately accommodating. Markets welcomed the FOMC statement by initially doing more of what they have done in recent months: piling even more into the momentum trade for risk assets, and further increasing the dollar-funded carry trade that Nouriel Roubini wrote about in the FT on Monday. As a result, US equity markets rose initially before succumbing ...
Did We Learn Anything? Carry Trade Edition
EconomPic —
... My concern now is that it appears we haven't learned anything from the turmoil that happened all of 8-12 months ago. As Nouriel Roubini recently pointed out, the correlation of all risk assets has approached one as all assets have all moved in one direction... up. ...
Dollar rise *alert*
FT Alphaville —
Yup that’s right. Talk of the end of dollar hegemony may be premature. The latest contrarian ’smart-money’ bet, partly fuelled by commentary from the likes of Nouriel Roubini and ...
Weekend Linky Dinks
UpsideTrader —
... Don’t mess with Julian Robertson . Bufftet’s Netjet fires 500 pilots. Intrade takes action on Healthcare, and passage looks poor. The Droid , another place to put your apps. Choo Beng Lee was insider trading at SAC Cap.“V” aims at Obamamania. Three potential bubbles for retail investors. Time to fire Geithner . Home equity loans remains tight. California taxpayers continue to get slammed. The mother of all carry trades faces a massive bust, the question is when? Matthews gets ...
Dr. Doom Nouriel Roubini believes the bubble is about to burst
BloggingStocks —
... Dr. Doom is back. Last week, New York University economist Nouriel Roubini decided to speak out about the current economic recovery, warning that it cannot last. I'm not quite sure how this blog missed my radar screen, so I must thank Robert J. Samuelson for ...
Debunking the size of the carry trade
FT Alphaville —
... carry trades. In both cases, the incentives are not only well below the peak, they are well below the average. If anything, this suggests that the market may be overestimating the extent of carry trades now in place and underestimating the potential for carry trades to be instituted if implied volatilities pull closer toward historical norms and realized volatility. In other words, it’s only when volatility diminishes that we will really begin to see the instigation of the “ mother of all carry trades “. Be warned. Related links: ...
Goldman: There is no dollar-funded ‘carry bubble’
FT Alphaville —
So Nouriel, you are being asked here to please calm down . Yup, you heard it here first. (And here , but let’s ignore that for now).“There has,” says Goldman Sachs strategist Mark Tan, “been a lot of focus recently on the extent of Dollar-funded carry trades contributing to the decline in the USD”. Tan continues: The IMF in a report prepared for the recently concluded G-20 Finance minister’s meeting cited ‘In addition to foreign funds moving into emerging market equities, led by expectations of higher growth, there are indications that the U.S. dollar is now serving ...
