Thursday, January 04, 2007  What a difference a day makes  Wow.
This time yesterday, equities were bid only, carry was on fire,
and you were lucky to find an offer in EM. Thanks to yesterday's
midday selloff in US equities, carry has been caned, commodities
are collapsing, and EM is offered only.  What gives?  Perhaps
there was an element of complacency in assuming that December
would follow on smoothly into January, and that risky assets
would continue to perform. When they didn't, and nascent YTD
P/L's turned negative, a selloff ensued.  Regardless, there has
already been a fair amount of rumour and innuendo today.  Macro
Man has heard stories that:  *There's been another coup in
Thailand *The SNB will announce that it's unhappy with CHF
weakness *Korea will impose Thai-style controls on foreign
portfolio flows  All a bunch of rubbish, naturally, but
nevertheless a useful insight into how (surprisingly) fragile
the market's psyche is. It is too early to conclusively state
that the worm has turned and that r