The logic of the carry trade is quite enchanting. Cheap funding, an attractive spread and the assumption that nothing is going to change all together make for fun of the highly levered variety. It’s that logic which is at the core of Kevin Coldiron and co-authors Tim and Jamie Lee’s examination of financial markets and economies in The Rise of Carry: The Dangerous Consequences of Volatility Suppression and the New Financial Order of Decaying Growth and Recurring Crisis.
Read the Book Review on Wilmott.com: https://wilmott.com/the-fed-becomes-a-carry-trader-in-its-own-right/
