carry trade----Borrowing in
low interest commanding money supplies (currencies) and lending it in
currencies with relatively higher rates of
interest. The risk is the
currency that is borrowed will appreciate against the other that is lent (it
will cost relatively more to get it at a different exchange rate), and the debt
will have to be repaid in the now more expensive currency, leading to a quick
scramble to pay off the debt including the selling of assets in the stock
markets, commodity markets, real estate markets, etc. See exchange rates.