The Next Bubble – Hit & Run : Reason Magazine

Let us sum up: traders are borrowing at negative 20 per cent rates to invest on a highly leveraged basis on a mass of risky global assets that are rising in price due to excess liquidity and a massive carry trade. …. Apparently, the companies that buy “scrap” gold (jewelry and what-not) are seeing deliveries dry up, especially in the lower carat-weight stuff. This is taken as indication that an awful lot of jewelry that people would be willing to sell is already sold. …

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The Next Bubble – Hit & Run : Reason Magazine

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