Using Your House To Carry Trade - Rookies Playing the Currency Market Using Thier Homes
From the WSJ:
Tamas Bencze got a rude surprise when he ripped open his mortgage statement last summer. In just two months, the payment on his three-bedroom home here had jumped 10%.
“My wife looked at our mortgage and asked me, ‘What’s happening?’” he says.
Mr. Bencze got burned playing a risky game: He had taken out a mortgage in a foreign currency, lured by lower interest rates abroad. Everything was fine until exchange rates suddenly shifted, causing his monthly payment to rise.
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Posted: May 29th, 2007 under Europe, Foreign Exchange, General, housing bubble.
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