greenspan apparently said to reuters overnight -
'that the yen carry trade cannot last forever and it has to end at some point'.
a few points here.
(1) greenspan never said much before when he was chairman - fact.
(2) he is now more vocal than he has ever been - fact why?
(3) would he have thought this when he was chairman but never publicly said it? probably yes.
(4) the point of saying it now - not paid to be a civil servant anymore so you do not have to tow the party line.
(5) what is to be gained from this? - cleaner conscience, the i told you so approach, different view from the fed, recognition that he is not over the hill etc.
(6) scaremongering - probably not.greenspan is an intelligent guy.no reason to scaremonher.
conclusion - definite problem reckonised by someone with expertees who can see real danger for the us economy/world economy if this trade implodes and can speak publicly about it much to the annoyance of the authorities.
'that the yen carry trade cannot last forever and it has to end at some point'.
a few points here.
(1) greenspan never said much before when he was chairman - fact.
(2) he is now more vocal than he has ever been - fact why?
(3) would he have thought this when he was chairman but never publicly said it? probably yes.
(4) the point of saying it now - not paid to be a civil servant anymore so you do not have to tow the party line.
(5) what is to be gained from this? - cleaner conscience, the i told you so approach, different view from the fed, recognition that he is not over the hill etc.
(6) scaremongering - probably not.greenspan is an intelligent guy.no reason to scaremonher.
conclusion - definite problem reckonised by someone with expertees who can see real danger for the us economy/world economy if this trade implodes and can speak publicly about it much to the annoyance of the authorities.
