The biggest carry trade from 2020 has yet to unwind. This time the asset bubble is predominantly in SP500.

This is worse than mortgages for at least two of reasons.

1) it’s harder to jam through a bail out of zombie companies who accrued debt for share buybacks vs mortgages for homes

2) equity is mark to market, homes are not, margin calls are wicked

Until the VIX rips up, the 2020 carry trade has yet to correct