Jul

3

 "Money is cheap because there's too much of it to be expensive. Furthermore, and I may be wrong here, perhaps it is also the case that because money is cheap there is too much of it." Riz Din (regular D'Spec contributor)

What does the yen going up or down have to do with money being cheap? Well, if the yen goes up, you get more dollars per shorted yen, so you can buy more stocks. On the other hand, if you're already shorted yen and it goes up you may have to cover and sell stocks. Contrary explanations and predictions.

Conversely, if the yen falls you get fewer dollars per yen so you can buy fewer stocks. On the other hand, if you were already short yen you just made some money that could be reinvested. Which is it? Is there any countable way of favoring one narrative over another? 


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