From Mr Sean Gautam.

Sir, With reference to Nouriel Roubini's article "The mother of all carry trades faces an inevitable bust" (November 2): the sudden unwinding of the dollar-based carry trades is a very apparent danger. However, Prof Roubini's concern points to a short-term dislocation event that may eventually reverse itself in line with the continued projected weakness of the US dollar. The father of asset bubbles that Prof Roubini did not discuss is the one that pertains to US Treasuries, which have enjoyed a stellar run as a safety haven and may soon get ready to pop as the US starts tightening its monetary screws. That asset bubble will have far wider implications for ordinary US investors than the "carry-traders" scavenging on the US dollar.