You are probably correct. During the bubble, you can point to silliness and wait for the ultimate day of reckoning. With the unravelling, the underlying connections become easier to see.
We have mentioned the carry trade from time to time, but if the yen shoots up, we might get a clearer view of how it affected financial markets. While it is working "satisfactorily", it is less transparent. Doug Henwood wrote:
In any case, I've been on PEN-L for more than 10 years. There was far less discussion of the bull markets of the late 1990s and of 2002-7 than the turmoil of the last few months. There's not much discussion of what the stock market means in general - unless it's going down and it allegedly presages crisis. Doug
-- Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901 www.michaelperelman.wordpress.com
