{"id":3839,"date":"2010-11-23T10:23:18","date_gmt":"2010-11-23T10:23:18","guid":{"rendered":"http:\/\/zmetro.com\/?p=3839"},"modified":"2010-11-23T10:23:18","modified_gmt":"2010-11-23T10:23:18","slug":"the_ultimate_ca","status":"publish","type":"post","link":"https:\/\/www.zmetro.com\/?p=3839","title":{"rendered":"The ultimate carry trade"},"content":{"rendered":"<p><a href=\"http:\/\/www.economist.com\/blogs\/buttonwood\/2010\/11\/sovereign_bailouts_and_voters\">The Economist<\/a><\/p>\n<blockquote><p><i>JUDGING by the callers on a late-night BBC radio programme, the British public is none too enthusiastic about the country&#8217;s participation in the Irish bailout. The standard reasoning was &#8220;Why are we giving money to Ireland when we haven&#8217;t got any ourselves?&#8221; Perhaps similar sentiments were being expressed on Radios Luxembourg, Belgium and Portugal.<br \/>\nBut of course, the money isn&#8217;t being given to Ireland, it&#8217;s being lent. And even if the eventual rate is below the market level of 8%, the new debt may still carry a rate of 5% or so. Well, Britain is still paying 3.3% for 10-year money. So this is a profitable gig, borrowing at 3.3% to lend at 5%. Perhaps the government should sell the scheme to the public as the ultimate carry trade, turning Britain into a hedge fund like LTCM.<\/i><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p><a href=\"http:\/\/www.economist.com\/blogs\/buttonwood\/2010\/11\/sovereign_bailouts_and_voters\">The Economist<\/a><\/p>\n<blockquote><p><i>JUDGING by the callers on a late-night BBC radio programme, the British public is none too enthusiastic about the country&#8217;s participation in the Irish bailout. The standard reasoning was &#8220;Why are we giving money to Ireland when we haven&#8217;t got any ourselves?&#8221; Perhaps similar sentiments were being expressed on Radios Luxembourg, Belgium and Portugal.<br \/>\nBut of course, the money isn&#8217;t being given to Ireland, it&#8217;s being lent. And even if the eventual rate is below the market level of 8%, the new debt may still carry a rate of 5% or so. Well, Britain is still paying 3.3% for 10-year money. So this is a profitable gig, borrowing at 3.3% to lend at 5%. Perhaps the government should sell the scheme to the public as the ultimate carry trade, turning Britain into a hedge fund like LTCM.<\/i><\/p><\/blockquote>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,9],"tags":[],"_links":{"self":[{"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts\/3839"}],"collection":[{"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3839"}],"version-history":[{"count":0,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts\/3839\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}