Procrustes and His Bed

Nouriel Roubini has an interesting piece on the FT about shorting the dollar to invest in risky assets and etc., etc., here.

Currency speculation and derivatives, playing the spreads… it adds up to too much money chasing a return, which distorts asset values and creates bubbles.  That’s all fine, except that the underlying asset is often a necessity for a population or a business.  The distortion leads to destruction.