Journal: Mother of All Bubbles to Burst

03 Economy
0Shares

Full Story Online
Full Story Online

Mother of all carry trades faces an inevitable bust

By Nouriel Roubini

Published: November 1 2009 18:44 | Last updated: November 1 2009 18:44

Since March there has been a massive rally in all sorts of risky assets – equities, oil, energy and commodity prices – a narrowing of high-yield and high-grade credit spreads, and an even bigger rally in emerging market asset classes (their stocks, bonds and currencies). At the same time, the dollar has weakened sharply , while government bond yields have gently increased but stayed low and stable.

Opt in for free daily update from this free blog. Separately The Steele Report ($11/mo) offers weekly text report and live webinar exclusive to paid subscribers, who can also ask questions of Robert. Or donate to ask questions directly of Robert.