Anatomy of a Chinese Bubble: A Checklist For Spotting Bubble Tops [View article]
Hmmm... the mention of the outlandish margin situations preceding the Crash of 1929 sparked a recognition of a very similar thing happening today with the yen carry trade.
I wonder how many hedge funds and trading departments are leveraged to the hilt using yen borrowed at next-to-nothing interest rates? And what will happen to them if something should happen to turn that leverage against them?
Anatomy of a Chinese Bubble: A Checklist For Spotting Bubble Tops [View article]
I wonder how many hedge funds and trading departments are leveraged to the hilt using yen borrowed at next-to-nothing interest rates? And what will happen to them if something should happen to turn that leverage against them?