Tuesday, April 12, 2011

Pennies and steamrollers?

I have always thought of the carry-trade as a classic example of "picking up pennies in front of the steamroller". Eric Burroughs thinks differently:

"From 2001 through 2010, this JPY-USD short versus a AUD-IDR long was up 162 percent, uncovered interest rate parity be damned."

That's a mighty slow steamroller, eh?

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