Caroline Baum, one of Bloomberg's most highly respected columnists, questions the veracity of Nouriel Roubini's claim that the carry trade is inflating assets around the world.
Zero percent interest rates started it. A weak dollar fueled it. Speculators fanned it. And famed forecasters see it everywhere they look. There’s only one problem with the claims that the dollar carry trade - borrowing dollars cheaply to invest in higher-yielding assets abroad - is inflating bubbles across the globe: There is no visible credit expansion, at least in the US, to support them.
Roubini’s bubbles float on flimsy credit source, Bloomberg, December 2, 2009
