YOU WANT THE TRUTH?

http://railfax.transmatch.com/ check this site out for rail shipping volume.....you see a revival?

WELCOME TO HELL by KD many believe their is a US CARRY TRADE going on right now....with GOV backstops why not take on MORE RISK? cant lose for them...dangerous game.

and this response from Sushi


Karl,

"It's very important to emphasize that this is a mutant and much more dangerous form of the Carry Trade as it existed prior to 2008 with the Yen. Back then, there was a significant interest rate spread to work with so the trader could earn the differential without credit risk via S-T sovereign debt (T-bills and equivalents). As Ldog pointed out, there is not much spread of that sort available to work with now.That means that any carry is having to go into risk assets to achieve a worthwhile return.

This is MUCH more dangerous than the old "clip the coupon and watch the cross-rate" version of the carry. Atop the currency translation risk, they now pile market risk, credit risk and maybe duration mismatch or maturity/liquidity risk. Another way to borrow short and lend long with all of the corresponding issues. Makes me think a big chunk of this might be the "too big to fail" guys going max risk assuming they can stick any losses to the taxpayer when it does go pear shaped. "
----------http://jengafinance.blogspot.com/

WHAT ECONOMY? SPX 1000 target is nearing, one possible TOP (THE TOP)