CNBC video: Roubini on Carry Trade

Besides the earlier 26th Oct CNBC interview, this 4th Nov video saw Prof Roubini speak at length on the dollar carry trade. Hear his take on the risks ahead.



Drawing a parallel to the yen carry trade following Japan's 80s recession, the long drawn nature of this subprime real estate bubble and the ensuing credit collapse is best understood by reading Richard Koo's "Balance Sheet Recession: Japan's Struggle with Uncharted Economics and its Global Implications". There is little choice but to keep interest rates low in order to for governments to pump prime and provide fiscal stimulus being the last resort where private demand will only be able to pick up the slack over a long period.