Monday, May 24, 2010
Phil Flynn: The Death Of The Carry Trade
With confidence in Europe being shaken and the dogma of ever increasing China demand is being questioned, the fragility of the oil price becomes so very apparent. The price of oil has got a lot of its bullishness not so much from oil demand but as a hedge against systemic risk. The euro has been the oil bull's best friend, not to mention the currency of “super models” but now it seems its fight for survival may have lost its appeal. The truth is that with the bailout of Greece and the purchases of debt by the ECB the Euro has changed forever anyway.Last week the markets went into crisis mode. The VIX volatility or fear index surged....Read the entire article.
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