Mark Anthony

Does Disaster Loom from Dollar Funded Carry Trades?

Karl:

Do you actually believe in Roubini's nonsense that there is a big bubble in US dollar carry trade? That professor guy at least recognizes that he can not touch any stock himself, or he will lose his pants. He is in his fantasy dream. The real investors, mean while, must make real investment decisions based on facts, not fantasies.

How many people actually borrowed US dollar money to buy equity or commodities? How many actually used credit cards to buy gold and silver? Did India borrow money to buy gold? Did China borrow dollars to buy commodities?

Why would any one believe Roubini's fantasy which is not supported by any data or fact at all.

There WILL be a US dollar carry trade. The dollar will collapse at the end. But we have hardly started yet. The US dollar carry trade will be a "short-to-zero" trade. There are very very few actually doing it right now.

Warren Buffet's bet on railway is actually a bet on China. He is betting that the US coal will be transported to west coast and then shipped to China. So if you believe in his bet, buy dry bulk shippers.

Your better bet is buy something that China has zero but America has, and something extremely critical to a big nation's economy. The precious metal palladium is the best China commodity carry trade bet, as indicated by Andrew Snyder:

seekingalpha.com/autho...

The collapse of trucking will mean famine on American soil. I hope not. Some truckers will go out of business. But the bulk of trucking will remain in business. The real collapse will be the lifestyle of people solo-driving a car to and from work 50 miles away every day. People will have to settle for car-pool or public transportation.