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Thursday, November 5, 2009
Mother of Carry Trades Will Lead to Asset Bust
Nouriel Roubini warns using cheap US$ to invest in riskier higher-return assets will quickly reverse once the US$ strengthens... foresees the Fed keeping interest rates low, weakening the US$ for a long time, making the unwinding all the more painful... "It's going to eventually occur but it's going to be six months from now, a year from now... In the meanwhile the bubble's going to become bigger globally and the bigger the bubble the bigger is going to be the crash."
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