Carry trade getting out of hand?

[nevadan]

quote from link

Switzerland has become the world's second biggest source of carry-trade credit after Japan as hedge funds and banks borrow tens of billions to lend elsewhere, especially in Eastern Europe....In 1998, the yen strengthened from nearly yen130 to yen110 to the dollar in just two days after Russia's default on panic unwinding of carry trade bets. Such a fall today could set off mass defaults, given the much larger scale of derivative contracts.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/11/30/cnswiss30.xml

 

[nazzdack]

If these expected defaults occur, ideally, only wealthier people will suffer if indeed these carry-trades are being done by hedge funds and bank proprietary trading desks. If moral suasion doesn't work in getting those position holders to lighten up, then they'll have to have their feet held in the fire.

 

[dhpar]

Quote from nazzdack:

If these expected defaults occur, ideally, only wealthier people will suffer if indeed these carry-trades are being done by hedge funds and bank proprietary trading desks. If moral suasion doesn't work in getting those position holders to lighten up, then they'll have to have their feet held in the fire.

what the f*$# is with you guy?
Why do you like wealthy people burning?

 

[nazzdack]

You're below par. Lighten up.

 

[dhpar]

Quote from nazzdack:

You're below par. Lighten up.

doing carry trade is not about being wealthy but about not being stupid - you were crazy if you did not fund yourself in Yen for the past few years.

I will not comment on your "let's kill wealthy people" - you are right - that is below par...