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  • The Roots of the Coming Crash [View article]
    "How big is the US dollar carry trade right now? A couple trillion dollars? I would rather say maybe a couple million dollars, tops."

    lets get the order of magnitude here right.. there are hedge funds out there, and bank trading desks, individual currency punters/traders
    who are short dollar in the billions. how ? not the way you described it:
    "How many of you, individual investors or fund managers, have actually take a bank loan, use the cash to buy gold, silver, or other commodities. Bring the physical stuff home, and dig a hole to bury them in the backyard?"

    there are easier ways than that in the 21st century. you can trade foreign exchange on a forward basis with no delivery only a need to post margin.

    the global currency markets trade around 1-2 trillion dollars turnover every day. this may be a bit bigger than you imagine. if you thought millions is a lot of money ("say maybe a couple million dollars, tops.") then let me tell you that its actually peanuts compared to the likely size of US dollar short in financial markets. i think it could be a trillion dollars, or at least a few hundred billion..
    Nov 05 05:36 am |Rating: +1 0
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