The Similarities Between the U.S. and Japan

In this video clip, Marshall Auerback, Global Portfolio Strategist of RAB Capital, discusses with Brian Sullivan of Fox News how the U.S. economy is comparable to Japan.

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Source: Fox Business, November 9, 2009 (hat tip: Credit Writedowns).

Comments

[dingding:]

What Mr. Auerback did not mention is that low interest rates in Japan helped fuel global asset inflation via the carry trade. The same carry trade using cheap US dollars will cause an even bigger dislocation in global asset prices.

Nov 15 02:59 AM

[Old Rick:]

Until, as Noriel Roubini points out, the dollar stabilizes or reverses and the "carry trades" are unwound as the traders all rush for the exits simultaneously.


On Nov 15 02:59 AM dingding wrote:

> What Mr. Auerback did not mention is that low interest rates in Japan
> helped fuel global asset inflation via the carry trade. The same
> carry trade using cheap US dollars will cause an even bigger dislocation
> in global asset prices.

Nov 15 12:19 PM