Thursday, Oct 30, 2008
Where are Japanese savings going next?
FT: Beware the unwinding of the yen carry trade
Japan has a $15,000bn pool of savings, the deepest in the world and worth more than the annual economic output of the US. In the past days, as spectacular moves in global currencies reveal, the carry trade has been violently unwound. With last week’s panic retreat from risk assets of almost every description came a dramatic rise in the yen, partially reversed in the past two days on rumours of a Japanese interest rate cut.
Posted by mountain goat @ 05:11 PM (422 views) Add Comment
3 Comments
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1. japanese uncle said...
The mega trend seems to have taken root. Apart from the unwinding of the carry trade (which may well show minor reversals for the next few months, though),.investment will be back to the rigid economies producing value added reliable products in a constant and diligent fashion, such as Japan and Germany, getting away from the financial non-business which in reality is nothing short of sober-looking casinos.
2. malct said...
Quote from Abraham Lincoln
"The government should create, issue, and circulate all the currency
and credits needed to satisfy the spending power of the government and
the buying power of consumers. By adoption of these principles, the
taxpayers will be saved immense sums of interest. Money will cease to
be master and become the servant of humanity."
3. mark wadsworth said...
Back to Australia.