Roubini: The Mother Of All Bubbles

Renowned economist warns of ‘mother of all bubbles’

According to Roubini, dubbed “Dr. Doom” for foreseeing the global financial crisis as early as 2006, “shorting a weak dollar in carry trades” has driven highly leveraged investments in all asset classes, creating a new – and potentially more dangerous – bubble.

“The longer and bigger the carry trades and the larger the asset bubble, the bigger the ensuing asset bubble crash,” Roubini said. “One day this bubble will burst, leading to the biggest coordinated asset bust ever.”

…men det kan sikkert ta fem år. Det blir en avveiingssak om man skal gidde å la seg affisere av så lange perspektiver.

Finanskrisen vi nå er inne i ble jo delvis drevet av carry trade fra Japan. Wikipedia har en liten notis om dette, som riktignok kan være synsing:

The 2008–2009 Icelandic financial crisis has among its origins the undisciplined use of the carry trade. The US dollar and the yen have been the currencies most heavily used in carry trade transactions since the 1990s. There is some substantial mathematical evidence in macroeconomics that larger economies have more immunity to the disruptive aspects of the carry trade mainly due to the sheer quantity of their existing currency compared to the limited amount used for FOREX carry trades.[citation needed]