Comments on: Brazil vs the global carry trade http://blogs.reuters.com/felix-salmon/2009/11/25/brazil-vs-the-global-carry-trade/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: chrismealy http://blogs.reuters.com/felix-salmon/2009/11/25/brazil-vs-the-global-carry-trade/comment-page-1/#comment-9155 Wed, 25 Nov 2009 20:07:22 +0000 http://blogs.reuters.com/felix-salmon/2009/11/25/brazil-vs-the-global-carry-trade/#comment-9155 I thought dsquared would bring up Paul Davidson’s international money clearing unit idea. I would do it, but I don’t think I’m qualified.

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By: gotthardbahn http://blogs.reuters.com/felix-salmon/2009/11/25/brazil-vs-the-global-carry-trade/comment-page-1/#comment-9153 Wed, 25 Nov 2009 19:44:05 +0000 http://blogs.reuters.com/felix-salmon/2009/11/25/brazil-vs-the-global-carry-trade/#comment-9153 This carry trade thing appears to be a growing problem. Even the Fed mentioned it in the Fed minutes report released yesterday. Reality is that until Messrs Bernanke & Co. start raising the Fed Funds rate, and aggressively, the USD carry trade is a no-brainer for any hedge fund out there. What WILL be scary is when the markets convince themselves that the Fed is about to raise rates and all these hedge funds, short USD and long everything else, all head for the exits at the same time. Can you say squeeze?

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By: M.G. in Progress http://blogs.reuters.com/felix-salmon/2009/11/25/brazil-vs-the-global-carry-trade/comment-page-1/#comment-9146 Wed, 25 Nov 2009 18:56:19 +0000 http://blogs.reuters.com/felix-salmon/2009/11/25/brazil-vs-the-global-carry-trade/#comment-9146 I do not see the problem; just increase the tax progressively until inflows slow down.

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By: dsquared http://blogs.reuters.com/felix-salmon/2009/11/25/brazil-vs-the-global-carry-trade/comment-page-1/#comment-9143 Wed, 25 Nov 2009 18:39:56 +0000 http://blogs.reuters.com/felix-salmon/2009/11/25/brazil-vs-the-global-carry-trade/#comment-9143 But it’s surely well aware that this is the kind of story which tends to end in tears. And that there’s not much it can do to stop the carry trade, without endangering the economy in other ways

maaaaaaaaaaate. Come on. You know, and have written long stories about it, that this isn’t true. If the lesson of 1997-2003 is that “there’s nothing that emerging market countries can or should do about large distorting hot-money capital flows”, then why shouldn’t the lesson of 2005-2008 be “aggressive selling of subprime mortgages is just part of the system and neither it nor the packaging of them into CDOs can be regulated”.

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By: MRegan http://blogs.reuters.com/felix-salmon/2009/11/25/brazil-vs-the-global-carry-trade/comment-page-1/#comment-9142 Wed, 25 Nov 2009 18:12:03 +0000 http://blogs.reuters.com/felix-salmon/2009/11/25/brazil-vs-the-global-carry-trade/#comment-9142 Petrobras Workers Reject Wage Proposal on Suspensions (Update2)

http://www.bloomberg.com/apps/news?pid=2 0601086&sid=a8Pn1jpvOxYI

May be of interest.

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By: MRegan http://blogs.reuters.com/felix-salmon/2009/11/25/brazil-vs-the-global-carry-trade/comment-page-1/#comment-9139 Wed, 25 Nov 2009 17:30:23 +0000 http://blogs.reuters.com/felix-salmon/2009/11/25/brazil-vs-the-global-carry-trade/#comment-9139 These inflows are a sort of debt attack* to mute various advantages (real and imagined) that os Brasilieros have at present.

*Sweet, sweet molasses, scrumptious and sticky…

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