RSS
TOP NAV
BOOK
BLOGS 12
BLOGS 11
BLOGS 10
BLOGS 09
BLOGS 08
BLOGS 07
BLOGS 06
BLOGS 05
BLOGS 04
| The Case of Hillary and the Vanity Mirror | The New "Time": Big and Brawny? |
Japanese Day Traders Try "Carry" Trade
by Christopher Chantrill
March 12, 2007 at 4:34 am
REMEMBER 1999-2000? THAT was the heyday of the day traders, amateurs trying their hand at making money in the stock market during their coffee breaks at work. It was an early warning of the NASDAQ meltdown: when the little guy gets in, it’s time to head for the exits.
It’s happened before. In 1929 Joe Kennedy (yes that Joe Kennedy) reckoned it was time to get out of the market when his shoe-shine boy started giving him stock tips.
It’s deja vu all over again. In Friday’s Wall Street Journal Yuka Hayashi writes about "Japanese Addiction: Currency Bets" (sub. required). A lot of Japanese small investors are borrowing yen to buy foreign currency. In other words, they are engaging in the "carry" trade just like the big boys in the hedge funds.
Only, of course, we are probably in the last days of the "carry" trade. It worked so long as people could borrow yen at nearly zero percent interest and then use the proceeds to buy other currencies and get five percent on their money.
But notice what happens if the yen goes up. That means that the other currency goes down. If it goes down by five percent or more, the investor is under water.
Take the case of Naomi Kashiwazaki. Hayashi writes:
She trades currencies from her small apartment in Tokyo’s suburbs. She started about a year and a half ago to supplement the income from her online store... In recent months, she has earned an average profit of $8,600 per month.
But probably not in the last month, for since March 1 the yen has suddenly risen by about four percent against the dollar.
This sounds like something that is going to end in tears.
Sphere: Related Content |Christopher Chantrill blogs at www.roadtothemiddleclass.com. His Road to the Middle Class is forthcoming.
What Liberals Think About Conservatives
[W]hen I asked a liberal longtime editor I know with a mainstream [publishing] house for a candid, shorthand version of the assumptions she and her colleagues make about conservatives, she didn't hesitate. “Racist, sexist, homophobic, anti-choice fascists,” she offered, smiling but meaning it.
Harry Stein, I Can't Believe I'm Sitting Next to a Republican
US Life in 1842
Families helped each other putting up homes and barns. Together, they built churches, schools, and common civic buildings. They collaborated to build roads and bridges. They took pride in being free persons, independent, and self-reliant; but the texture of their lives was cooperative and fraternal.
Michael Novak, The Spirit of Democratic Capitalism
Society and State
For [the left] there is only the state and the individual, nothing in between. No family to rely on, no friend to depend on, no community to call on. No neighbourhood to grow in, no faith to share in, no charities to work in. No-one but the Minister, nowhere but Whitehall, no such thing as society - just them, and their laws, and their rules, and their arrogance.
David Cameron, Conference Speech 2008
Socialism equals Animism
Imagining that all order is the result of design, socialists
conclude that order must be improvable by better design of some superior mind.
F.A. Hayek, The Fatal Conceit
Sacrifice
[Every] sacrifice is an act of impurity that pays for a prior act of greater impurity... without its participants having to suffer the full consequences incurred by its predecessor. The punishment is commuted in a process that strangely combines and finesses the deep contradiction between justice and mercy.
Frederick Turner, Beauty: The Value of Values
Religion, Property, and Family
But the only religions that have survived are those which support property and the family.
Thus the outlook for communism, which is both anti-property and anti-family, (and also anti-religion), is not promising.
F.A. Hayek, The Fatal Conceit
Racial Discrimination
[T]he way “to achieve a system of determining admission to the public schools on a nonracial basis,”
Brown II, 349 U. S., at 300–301, is to stop assigning students on a racial basis. The way to stop
discrimination on the basis of race is to stop discriminating on the basis of race.
Roberts, C.J., Parents Involved in Community Schools vs. Seattle School District
Postmodernism
A writer who says that there are no truths, or that all truth is ’merely relative’, is asking you not to believe him. So don’t.
Roger Scruton, Modern Philosophy
Physics, Religion, and Psychology
Paul Dirac: “When I was talking with Lemaître about [the expanding universe] and feeling stimulated
by the grandeur of the picture that he has given us, I told him that
I thought cosmology was the branch of science that lies closest to religion.
However [Georges] Lemaître [Catholic priest, physicist, and
inventor of the Big Bang Theory] did not agree with me. After thinking it over he
suggested psychology as lying closest to religion.”
John Farrell, “The Creation Myth”
Pentecostalism
Within Pentecostalism the injurious hierarchies of the wider world are abrogated and replaced by a single hierarchy of faith, grace, and the empowerments of the spirit... where groups gather on rafts to take them through the turbulence of the great journey from extensive rural networks to the mega-city and the nuclear family...
David Martin, On Secularization
Never Trust Experts
No lesson seems to be so deeply inculcated by the experience of life as that you should never trust experts. If you believe doctors, nothing is wholesome: if you believe the theologians, nothing is innocent: if you believe the soldiers, nothing is safe. They all require their strong wine diluted by a very large admixture of insipid common sense.
Lord Salisbury, “Letter to Lord Lytton”
Mutual Aid
In 1911... at least nine million of the 12 million covered by national insurance were already members of voluntary sick pay schemes. A similar proportion were also eligible for medical care.
Green, Reinventing Civil Society
mysql close 0