Guests Kevin Coldiron, Jamie Lee, and Tim Lee discuss the rise of carry and its impact on financial markets. They explain how carry trades dominate market behavior, driven by low interest rates and declining volatility. They explore the consequences of carry trades on asset prices, social instability, and global liquidity. The speakers also discuss the relationship between carry, leverage, and debt, highlighting the unsustainable nature of the current financial model. They delve into the shift towards extraction in finance, where profitability is sacrificed for shareholder returns.

Kevin Coldiron, co-author of 'The Rise of Carry', and financial expert Alan Dunne dive into the evolving landscape of carry trades. They discuss the recent unwinding of the Yen carry trade and its implications on financial strategies. Coldiron highlights the role of the S&P 500 within the current carry regime and deliberates on potential risks such as a deflation shock. The conversation also touches on how geopolitical dynamics could influence future carry strategies, making this a must-listen for investors navigating today’s complex markets.

Tim Lee and Kevin Coldiron discuss the impact of carry trades on emerging markets, implementation of transaction taxes in Latin America, and the repercussions of central bank interventions on carry trading and future monetary policy.