Just as Japan is starting to unwind its carry trade, a new one might be forming in the form of 1% base rates in the United States. The carry trade was very popular amongst Japanese retail investors, especially using leverage (see article – hat tip Yves Smith). But, this trade unwound in a [...]

So, I am back in the saddle after a great weekend in Palm Beach. And three days almost entirely away from Newspapers, Televisions, Telephones, and Computers is a very good thing to clear the head. (Although I did happen to catch Sarah Palin on “Saturday Night Live” and I thought it was well [...]

Last night, on Bloomberg TV I heard that New Zealand had become the first Asian economy to officially slip into recession. Today, I have seen the stats confirming this.
Jim O’Neill, Chief Economist at Goldman Sachs, says the chance of global recession is only 10%. I don’t see how he can believe [...]

Last week, we heard that Australia’s NAB had to take a massive writedown due to American CDO exposure (apparently triggered by Merrill Lynch). Yesterday, we heard about Australia’s ANZ Bank taking it on the chin to the tune of $1.2 million Australian.
Now, it’s New Zealand’s turn with the problems at the New Zealand Guardian [...]

I am here on my computer in anticipation of the morning market sessions in Asian trading. Certainly, this will set the tone for an important week. While I was looking for more news on the GSEs, I was reminded of the slowing economies around the globe by a Bloomberg report on New Zealand.
In a [...]