Thursday, August 16, 2007

A dramatic surge in the Japanese yen over recent days has cut off a key source of liquidity for the global asset boom, setting off a panic flight from emerging markets for the first time since the latest turmoil began.

Yen surges as carry trade unwinds

The Yen Trade begins to unwind, liquidity diminished. Soon, interest rates and the cost of credit will be irrelevant due to shortages.

Posted by planning4acrash @ 12:58 AM (443 views)
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2 thoughts on “A dramatic surge in the Japanese yen over recent days has cut off a key source of liquidity for the global asset boom, setting off a panic flight from emerging markets for the first time since the latest turmoil began.

  • Wow. This is potentially huge…far more important than the next 0.25% interest rate rise. It really feels like the dominoes are starting to fall, and that it’s not merely wishful thinking this time.

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  • sold 2 rent 1 says:

    “The scale of forced portfolio liquidation will become clearer after last night’s expiry of the third-quarter deadline for hedge fund redemptions, which must be submitted 45 days in advance. If too many investors rush for the exit at the same time, this August 15 cut-off could prove to be the trigger for another bout of global turmoil.”.

    I wonder what “too many investors” is? 20%, 50% or 80%? Lets face it, any sane investor will want out. More trouble ahead.

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