Are Carry Trades Wrong?

Well you can't say we didn't tell you so. Burger & Darkstar also warned you about the risk of carry trade. I knew things felt too good to be true. This is when you know its time to exit. I think the carry will continue to unwind from this point forward with small retraces.

Ro

while we use broker that lend and borrow, some people just change their saving to diffrent currency. so they don't pay bank interest nomater where the market goes.
so it is now not a pair, but a true money, in single currency which you can change the pair in any time .
eg now u have sterling, since the possibilities the us will raise interest, u change it to $, and if the next month oil rise which effect Cad, you change it to Cad. and so on, so on..

if you feel guilty, then become exporter / importer as well, if you can hold 1/2 - 1/4 year of company profit in other currency, that will be good.

Yen-carry trades are inevitable, since the Japan interest rates are so low as compared to other industrialized countries. No doubt people will take advantage of this situation!
But for how long it can go on? BoJ is careful with every step it takes.. So, carry trades will diminish when the value of the Yen falls to its lowest point in record.. Perhaps that can compel BoJ to adopt a more hawkish approach as the threat of inflation sets in!
Another possibility is an intervention by G7 but till now, this matter has been sidelined after all.
And for us traders, just take advantage of this situation to make money.. We cannot do anything about it, it is a free market....