That paper was written in July..
meaning the smoke and mirrors were in full force about the sub-prime mess..Alot has happened fundamentally since July...
I still have to finish reading this.....good stuff ,but as you search for clues ,keep in mind what happened to the world economies in past few months..at least thats what I try to keep in mind as I hear and see whats being said on the street....
To see if the carry continues watch closely US,Asian and the European stock markets..if they continue strong under their own weight.....,the carry continues..if they are only held up by Federal interventions...the correlations between pairs we have seen in the past will disintegrate and change directions.
At least thats what I see....