That’s just what happened last year. Only then, it was both a dollar and yen carry trade that led to a rise in Aussie assets. Once the credit crisis set in, the yen carry got dropped and investors fled risk assets and piled right back into the greenback and U.S. Treasuries.
October 29th, 2009 | Dan Denning | 9 comments | ContinuedAll Posts Tagged With: "investment banks"
Investment Banks Making Money Thanks to US Government Bailouts
Meanwhile, the Bank of America is a real bank. With real mom and pop customers. And the poor moms and the poor pops are going bust. They can’t pay their bills.
October 20th, 2009 | Bill Bonner | 0 comments | Continued
Don’t Buy the A-REITs
“Australia stands out like a beacon because the yields here are much greater than other parts of the world,” says AMP Capital Brookfield chief investment officer Kim Redding. He tells Bloomberg that, “If you like the Aussie dollar and you like yield, Australian LPTs would be a pretty good place to be.”
October 20th, 2009 | Dan Denning | 2 comments | Continued
Economic Cycle Theory
We began the week wondering about the cycles of history and markets. We wondered whether Australia is following the Anglo-American cycle into a long-winter…where people lose confidence in each other, in government, and in the institutions they relied on in the past for law and order, employment, and prosperity.
October 15th, 2009 | Dan Denning | 29 comments | Continued
American House Prices Continue to Fall While the Same Can’t Be Said About Australian House Prices
You wonder why anyone is building houses in America at all. Unlike Australia, there is a huge surplus of housing inventory in the States. America over-built its housing stock to epic bubble levels during the boom.
May 20th, 2009 | Dan Denning | 14 comments | Continued
Government Intervention for Economy Makes Things Worse
In the wake of this change of heart on the part of our leaders, Americans found themselves bombarded with a predictable and relentless refrain: the free market economy has failed.
May 6th, 2009 | Thomas E. Woods, Jr. | 2 comments | Continued
Hell, Meet Handbasket, Part I
Until recently, average Americans were only dimly aware that there were two types of banks – the commercial banks nearby and the major investment banks located in faraway New York. Understanding the bank where they conducted business, with people they knew, was enough.
November 13th, 2008 | Doug Hornig | 2 comments | Continued
Hard to Keep Up With the Number of Ways Bernanke is Lending to Banks
The Fed is subsidising risk taking by continuing to lend generously at the discount window. It’s getting hard to keep up with the number of ways Ben Bernanke is lending to other banks, to investment banks, and to primary dealers.
April 8th, 2008 | Dan Denning | 0 comments | Continued
The Present Period in Financial History Favours Ducks and Undertakers
The present period in financial history favours ducks and undertakers. On the banks of the Thames and the Hudson, every day they fish a couple more cadavers out of the water. And then the medical examiner opens them up so we get to see what caused them to go under. What a sight! It is amazing that any sane investor ever had anything to do with them in the first place.
April 7th, 2008 | Bill Bonner | 0 comments | Continued