Why would you not do this for the short term, assuming you could find a lender and a % of your income was in dollars?
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"Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain -
We've had this before when the yen was at zero interest for some time.Originally posted by scooterscot View Post
Do a search for "yen carry trade" you'll find all of the arguments for and (mostly) against."See, you think I give a tulip. Wrong. In fact, while you talk, I'm thinking; How can I give less of a tulip? That's why I look interested." -
What US lender in this credit crunch is going to lend on a property in the UK?Originally posted by scooterscot View Post
Even if they did, the exchange rate can move against you meaning suddenly your debt has just got a lot bigger.
HTHComment
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No, no, no, no. The banks like mortgage risk over in the US at the moment. Really.Originally posted by DimPrawn View PostHang on - there is actually a place called Cheddar?? - cailin maith
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I remember when I were a lad in the 80's something in the news about County Councils which had borrowed money in foreign currencies because of this kind of shall we say economic opportunity and later exchange rates and interest rates had turned against them and they were fooked
anyone else remember this ?
Milan.Comment
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Thought they had trouble because their money was with BCCI, not because they themselves had decided to speculate?Originally posted by zeitghostComment
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Are you thinking of Councils getting involved in interest rate swaps? That was in the 90’s. It didn’t end well.
Edit: Yes, many councils had exposure to BCCI. That didn't end well either.How did this happen? Who's to blame? Well certainly there are those more responsible than others, and they will be held accountable, but again truth be told, if you're looking for the guilty, you need only look into a mirror.
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A lot of farmers went under in Oz a few years back after being encouraged to take out foreign currency loans by the Oz banks.
I've looked into it a few times at different times and the companies offering it to normal (mug !?) punters want to take a large share of anything you may gain by doing it but obviously have nothing to do with any losses. Avoid like the plague unless you are using somebody elses money as with most hedge funds and investment banks borrowing in Jap yen.Comment
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