Carry Unwind En Masse As Market Plunges

With the Goldman hearing going horrendously for the squid, and S&P pouring nitroglycerin on the sovereign implosion fire, the primary source of funding, the carry, is getting taken out to the woodshed. The unwinds of carry mechanism make controlled single file exits out of a burning bank office building seem tame in comparison.

http://www.zerohedge.com/article/carry-unwind-en-masse-market-plunges

Chart at link

I have no idea what exactly you wrote.

When conditions change quickly for one of the currencies, the profit-loss picture can turn against a trader very quickly.

If many traders are in the same boat, they undo their positions as a herd and magnify the unwelcome situation.

http://en.wikipedia.org/wiki/Carry_trade#Currency

...about the economy. I was so on top of it.

Then I got completely burned out. The majority of what we read
in the MSM is bunk. Then, you've got your statistic twisting. A
seemingly positive stat will be presented as a gigantic green shoot
that we can all climb aboard and ride off into the sunset.

I found myself reading and and constantly straining to read in between the lines.
Then I wonder if I'm paranoid or I blame myself for my inability to take
anything at face value. Then, I'd search for some truth, but it's
always on obscure sites like jingocat.com or truthbedamned.org or some such
other nonsense.

So, when you talk economics with your neighbors (who've been swallowing
CNN articles whole) and you tell them you read read the truth on
jingocat.com--they look at you sideways and start briskly walking away as
they tell you it's time to clean out their shed.

So basically...I stopped reading about the economy. I have no idea what
is going on. I suppose that's how "they" want us--confused and tuned out.

And who is "they?" There I go again...

I think you're in an aware state of skepticism.
I used to read Morningstar at the local community college library and saw the P/E ratios way off before the dot-com bust. Everybody thought I was nuts too. Same with the RE bubble -I was called a paranoid too.

Now it's time for gold, or seeds and soil, or departure -IMHO.

I don't bother studying the voodoo chicken bones either, no matter how well-tossed. But! I'm very grateful to those that still do. I trust many here with their analysis of details when their macro view aligns with my own and if it seems reasonable.

would that make them calamari?

...i did have some delicious fish-wraps today

... I hope they lose their asses.

:shrug: