They don't ring a bell at the top, goes the old saying. But all we could hear last night was cow bell and more cow bell. Granted, it was part of the percussion section of a jazz/blues/funk band playing for the opening of a new art gallery on St. Kilda Road. But we're going to take the cow bell as a warning, and dedicate today's Daily Reckoning to it. But a warning about what? Sure, stocks, oil, and gold were all down yesterday and the U.S. dollar was up. But is it really the end of the dollar carry trade? And if it is, what happens next?
More cow bell!
We should back up a second. What is the dollar carry trade? It's the engine of bank profit growth this year. It's what's given the illusion that the financial system has recovered from its brush with death last year. (more)
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