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BOJ Injects Unprecedented 7 Trillion Yen In Money Markets As Tokyo Stock Exchange Circuit Breakers Activated

Tyler Durden's picture


Contrary to expectations that the BOJ would injected "only" JPY2 trillion in its emergency operation earlier, Shirikawa came out with a stunner, putting in a whopping 7 trillion yen into Japanese money markets. From Reuters: "The Bank of Japan on Monday
injected a hefty 7 trillion yen ($85 billion) into the money
market in a same-day market operation aimed at soothing market
jitters after a massive earthquake and tsunami hit northeastern
Japan. This was the central bank's first so-called same-day
operation since last May, when the Greek debt crisis roiled the
global financial markets. BOJ Governor Masaaki Shirakawa said on Sunday that the
central bank would provide huge amounts of liquidity to the
banking system on Monday, reinforcing the bank's determination
to keep markets stable in the wake of the disaster." In the meantime, after the Nikkei has plunged over 5%, and the Topix down by 7%, circuit breakers have been activated on the Tokyo Stock Exchange. Elsewhere, the US plunge protection is hard at work, sending futures surging from the overnight drop, after reality threatened to impose itself. Another masterful showing by Sack Frost.


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Sun, 03/13/2011 - 20:30 | 1047700 asdasmos
asdasmos's picture

03/14 - 9:25
9,703.01     -551.42 ( - 5.38%)

03/14 - 9:04
81.41 - 81.44     -1.37

Sun, 03/13/2011 - 20:42 | 1047753 goldfish1
goldfish1's picture

^N225 Nikkei 225 9,660.78 8:20PM EDT Down 593.65 (5.79%)

Sun, 03/13/2011 - 22:05 | 1048135 Crumbles
Crumbles's picture

10pm EDT - Yen at 82.21,  up 0.92, Au now Down from previous 1432 to 1422 after a 3-point gap after electronic opening.  Ag now down 0.35 at $35.90 after reaching 36.45 earlier Sunday.

Look Out Below!  And don't forget to BTFD in PM's

Sun, 03/13/2011 - 20:34 | 1047707 The Alarmist
The Alarmist's picture

And yet JPY/USD is still sub 82 ... what does that tell you about the intrinsic value of USD? That is truly spooky.

Sun, 03/13/2011 - 20:34 | 1047716 asdasmos
asdasmos's picture

One interpretation:


If this were not already enough, the Japanese are now selling US Treasuries to repatriate money back to their country for rebuilding purposes (Japanese insurance companies hold large numbers of US Treasuries which they will need to sell and convert to yen to pay claims – that is the reason for the big rally in the yen on Friday and the weakness in the Treasuries).



Sun, 03/13/2011 - 20:56 | 1047831 Michael
Michael's picture

I knew it, said it, and people laughed. Unintended consequences will quake the markets worldwide.

If you are going to panic, panic first.

Massive sovereign debt is a threat to national security in situations like massive earthquakes and hurricanes that are inevitable.

Sun, 03/13/2011 - 21:25 | 1047995 KickIce
KickIce's picture

Always figured China and Japan were involved in a game of chicken with a quick trigger on the sell button.

Sun, 03/13/2011 - 20:37 | 1047711 Threeggg
Threeggg's picture

Is this Real Yen or Plastic Yen ?

NI225 is down  -5.26% right now.

Sun, 03/13/2011 - 20:36 | 1047713 The Count
The Count's picture


OK now, if anybody really believes the bobbing heads on CNBC that a devastating earthquake is a good thing, we all deserve to go to hell. I look forward to kicking Blankfeins puny little ass there.


Sun, 03/13/2011 - 20:34 | 1047715 bankonzhongguo
bankonzhongguo's picture

As the Chinese say, "May you live in interesting times."

Sun, 03/13/2011 - 21:23 | 1047982 Double down
Double down's picture

That is meant to be curse

Sun, 03/13/2011 - 22:18 | 1048186 Crumbles
Crumbles's picture

Complete quote is: May you have an interesting life and come to the attention of the King.

Yes, it is truly a curse.

Sun, 03/13/2011 - 20:36 | 1047720 djrichard
djrichard's picture

How does the BoJ inject liquidity?  Do they buy assets?  Or do they somehow stimulate more participation at the debt window?

Sun, 03/13/2011 - 20:38 | 1047730 Yen Cross
Yen Cross's picture

Via US treasury liquidations.

Sun, 03/13/2011 - 20:51 | 1047829 djrichard
djrichard's picture

But if they swap US Treasuries for Yen, they're taking Yen out of the market.  Presumably they're injecting those Yen back into the market.  I can't imagine they're using the debt windows - I'm assuming those debt windows have been abused so long, the "customer base" has indigestion.  In which case I'm assuming they're swapping Yen for other assets (possibly even US Treasuries being sold by private holders in Japan - one article talked about the Insurance sector liquidating their holdings - I could imagine BoJ buying those).

Sun, 03/13/2011 - 21:11 | 1047931 AUD
AUD's picture

Yes, they buy 'assets' (note inverted comma's). The idea is to 'monetise' the 'assets' of the 'banking' system, so as to keep it 'liquid'.


Sun, 03/13/2011 - 21:12 | 1047934 Lord Welligton
Lord Welligton's picture


They have to liquidate their Dollar holdings to buy commodities for the rebuild.

They can only buy commodities in Dollars. It is the reserve currency.

Buy dumping Treasuries they can buy commodities cheaper.

The Tsunami may have hit Japan.

But it may no just hit the Dollar.

If Bernanke prints more it makes it worse.

I call this rock and a hard Tsunami.


Sun, 03/13/2011 - 22:10 | 1048150 dark pools of soros
dark pools of soros's picture

not if they buy them from China

Sun, 03/13/2011 - 20:59 | 1047843 Threeggg
Threeggg's picture

True story:

Many years ago I hired a Polish Blonde Bombshell accountant for my business. (I know that wasn't to brite but I was young then and the eye candy was prime !)

When I approached her about accounting irregularities ( As the ledger had a -6,000  imbalance on the checking Reconciliation for that month) she said no problem and went into the software (right then and there) and just added $6000 to the checking account (as I watched) and when she hit the enter key she said "ok" "All fixed now".

Her employment was terminated on the spot.

I think that is what all these central banks are doing. Although they are not as good looking as she was  !

Sun, 03/13/2011 - 22:12 | 1048162 dark pools of soros
dark pools of soros's picture

you are an idiot for not promoting her to investor relations

Sun, 03/13/2011 - 20:40 | 1047722 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Why aren't U.S. citizen's storming wall street to show the powers that be that they still have fight in them? Last time i went down there it was an easy stroll through, no barb wired, walls or anything major to stop it being stormed like the brave souls of the middle east stormed their institutions.

Maybe Americans have become so dumb that they think Wall street is called so because of it's impenetrable walls.

The apathy is truly sickening. The U.S. is going to crumble to nothing overnight and rightly so, the citizen's didn't even put up a fight.

Sun, 03/13/2011 - 20:39 | 1047734 goldfish1
goldfish1's picture

They aren't educated.

Sun, 03/13/2011 - 20:43 | 1047762 Yen Cross
Yen Cross's picture

Hey Funny Monkey! Why don't you storm (Tiananmen Square) Oh wait, was that renamed?

Sun, 03/13/2011 - 20:47 | 1047815 Lowest Common D...
Lowest Common Denominator's picture

The moment folks start missing meals?  It's on like Donkey Kong.  You're confusing the game's first quarter with the final.

Sun, 03/13/2011 - 21:06 | 1047923 ManOfBliss
ManOfBliss's picture


Sun, 03/13/2011 - 20:56 | 1047885 LowProfile
LowProfile's picture

Wait until the price of these five things spike:



Cell phone serviz



Those are the five things the gooberment should subsidize immediately if they don't want a revolt...

Sun, 03/13/2011 - 21:04 | 1047911 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Yes, unfortunately that's the truth. Well, i think it's now been rubber-stamped, based on their behavior over the past few years, the US citizen is the most apathetic, docile, mentally challenged, immoralistic being on the planet at this time in history.

Go Team!

I feel sorry for all the hard working, abused, downtrodden, people of the far east that have subsidised the lifestyle of the U.S. citizen.

Sun, 03/13/2011 - 21:53 | 1048094 Pegasus Muse
Pegasus Muse's picture

Don't be raising the price of my Sam Adams.

Them's be fight'n words.

Sun, 03/13/2011 - 21:36 | 1048029 Saxxon
Saxxon's picture

Funkymb, and where do you hail from?  Why don't you go sit on your thumb somewhere.

Sun, 03/13/2011 - 22:27 | 1048246 Crumbles
Crumbles's picture

Boy!  Big muscles = baby brain; guess it's true

Your avatar seems to be straining - trying to remove a stuck thumb ?

Sun, 03/13/2011 - 20:38 | 1047724 Yen Cross
Yen Cross's picture

As the Chinese say? They are soo transparent! They just run bull dozers over their dead.

Sun, 03/13/2011 - 20:38 | 1047725 dryam
dryam's picture

The Bernank is hiding in his bathroom right now.

Sun, 03/13/2011 - 20:38 | 1047731 the_white_mouse
the_white_mouse's picture

Silver immediately loves this news!  Take heed of someone on the last silver post though, who accurately warned of the impending quadruple witching...never know what happens when that is in play.

Sun, 03/13/2011 - 20:40 | 1047735 boeing747
boeing747's picture

Sure Japan is world No.1 inkjet printer exporters, some of printers are in Ben's basement.

Sun, 03/13/2011 - 20:40 | 1047736 SwingForce
SwingForce's picture

O boy, where is Martha Quinn? How come she's not on CNBC??? Or Lenny & Sqiggy, they would fit right in.

Sun, 03/13/2011 - 20:41 | 1047752 trendybull459
trendybull459's picture

We need your help,come to us and make your voting:

tell it to friend,we need to rich every interesting one to make his vote for FED existence

Sun, 03/13/2011 - 20:47 | 1047767 plocequ1
plocequ1's picture

But, But , But But they cant do this. Come on Tyler, Cant you and Deninger team up and produce some kind of supersonic  debt chart that shows Tranny pop up ads ?

Sun, 03/13/2011 - 20:44 | 1047769 buzzsaw99
buzzsaw99's picture

The whole planet could be dead and the only things those maggots would care about is the damn banks and flipping nikkei.

Sun, 03/13/2011 - 20:48 | 1047819 Yen Cross
Yen Cross's picture

I'm on sabbatical. Maggots,and orange sorbet. And a healthy dose of Hawaii 5-o. Book em Danno!

Sun, 03/13/2011 - 21:00 | 1047897 velobabe
velobabe's picture

no it is going to change, i know it. you still could use a face job.

Sun, 03/13/2011 - 21:11 | 1047933 buzzsaw99
buzzsaw99's picture

come on sweetie, pucker up and give us a kiss.

Sun, 03/13/2011 - 20:46 | 1047788 Mr. Poon
Mr. Poon's picture

How does the old saying about "blood in the streets" go?  I think for the first time in quite some time, I am genuinely interested in Japanese stocks.

Sun, 03/13/2011 - 21:10 | 1047929 jesse livermoore
jesse livermoore's picture

it says buy real estate,    not stocks  ................

Sun, 03/13/2011 - 20:45 | 1047796 apberusdisvet
apberusdisvet's picture

This coming week is critical for Blythe.  She has to drop silver to 35 before April l.

Sun, 03/13/2011 - 20:46 | 1047799 Everybodys All ...
Everybodys All American's picture

CNBC - can we assume the crash team is on call?

Sun, 03/13/2011 - 20:51 | 1047833 Id fight Gandhi
Id fight Gandhi's picture

Shitnbc cut into it's infomercials for it's version of news. Nuclear energy.

Us futures barely down?

Sun, 03/13/2011 - 21:03 | 1047909 alien-IQ
alien-IQ's picture

@7:47 pm EST there was a huge volume spike in the /ES of over 10,000 contracts (which is huge at that time) promptly reversed direction for the /ES as it surged (in 1 minute mind you) from 1291.75 to 1300.75 (IN 1 MINUTE!!!)

alright people, nothing to see here, move along.

Sun, 03/13/2011 - 20:46 | 1047801 rubearish10
rubearish10's picture

Really, what if Martians landed? I'm reaching for something, anything that would bring truth to the Shit&Piss 500 and its supporters.

Sun, 03/13/2011 - 20:52 | 1047837 wretch
wretch's picture

Imaginary things don't need to correlate with fundamental laws.  They only vacillate between relevant and irrelevant.

Sun, 03/13/2011 - 20:56 | 1047889 Yen Cross
Yen Cross's picture

Sweet! Just like Warp Drives and Worm Holes!  The quantum effect?

Sun, 03/13/2011 - 21:00 | 1047898 rubearish10
rubearish10's picture

Oh, so this is the Twilight Zone?

Sun, 03/13/2011 - 20:47 | 1047816 Atomizer
Atomizer's picture

bwahahahaha. Viewers watching dancing with the czars will nod in compliance.

Sun, 03/13/2011 - 20:52 | 1047847 Atomizer
Atomizer's picture

BTW.. Thank you Tyler.

Sun, 03/13/2011 - 20:56 | 1047869 Psquared
Psquared's picture

It looks like the Japanese are just trying to guarantee obligations and backstop liquidity so their economy doesn't come to grinding halt. What else can they do?

What worries me is concentrated selling of treasuries on the open market. That could jack interest rates sky high. Of course, the FRB could step in and buy those treasuries. I don't see how they can stop QEII in June now.

Sun, 03/13/2011 - 20:58 | 1047875 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

DOW futures about to turn blue. Yes, that's right, the worlds third largest economy has got to crapper, infrastructure shot to pieces... obviously enough people didn't die in Japan to warrant a down day in the world's No 1 banana republic USA 'markets'.

Sun, 03/13/2011 - 21:02 | 1047906 Id fight Gandhi
Id fight Gandhi's picture

People, jobs don't matter.

Japan printed some money so everything is fine.

Sun, 03/13/2011 - 21:26 | 1047992 John117
John117's picture

I believe this asnswers your other question as well..

As John Steinbeck wrote in America and Americans in 1966...

"Now we face the danger which in the past has been most destructive to the human - plenty, comfort and ever increasing leisure.  No dynamic people have ever survived these dangers." 

Ecclesiastes 1:9 seems to fit too - What has been will be again, what has been done will be done again; there is nothing new under the sun

Sun, 03/13/2011 - 21:28 | 1048004 Yen Cross
Yen Cross's picture

Quit smoking, it clouds your BETTER judgement.

Sun, 03/13/2011 - 20:56 | 1047888 virgilcaine
virgilcaine's picture

pure panic tomorrow..

Sun, 03/13/2011 - 20:58 | 1047894 Platinum_Investor
Platinum_Investor's picture

Tomorrow will be a blood bath, don't matter if the futures are down or not.

If the Japan markets are down that much the US can't over come that.

But looks like GOLD and SILVER is becoming more and more the flight to safety

that we've all been waiting for, for a long time.  Up currently

$9.00 and Silver up 0.50 cents

Sun, 03/13/2011 - 22:36 | 1048304 Crumbles
Crumbles's picture

as of 10:30, EDT, Gold spot at 1418, down almost $7 and Silver down $0.71 at 35.55 and both are dropping and rising like a ship in a tsunami - gold up 2 dollars as I type - wild ride.

Sun, 03/13/2011 - 20:59 | 1047899 DavidC
DavidC's picture

Desperation, pure desperation.


Sun, 03/13/2011 - 21:05 | 1047914 reader2010
reader2010's picture

Sure, this can jump start their housing market.

Sun, 03/13/2011 - 21:11 | 1047937 trav7777
trav7777's picture

wtf do you expect, the nation just got hit by one of the few largest earthquakes in recorded history and an utterly massive tsunami...after we thought Xmas day in 04 was once in a lifetime.

And what do we see on ZH?  Shorts bitching that the CBs may monkeyhammer them.  Everyone is no more than a speculator vulture.  Japan should close their exchanges as they have more pressing needs right now than feeding casino frenzy

Sun, 03/13/2011 - 21:18 | 1047963 DavidC
DavidC's picture

Unlike Goldman, JPM et al, who will, of course, be bound by a moralistic approach to what's happening in Japan, Libya, etc.


Sun, 03/13/2011 - 21:18 | 1047971 trav7777
trav7777's picture

fuck them too...get rid of all of them

Sun, 03/13/2011 - 21:32 | 1048017 Yen Cross
Yen Cross's picture

Man I have been missing your fun remarks. Nice to see you back! Smiles !!!!

Sun, 03/13/2011 - 21:20 | 1047974 Lord Welligton
Lord Welligton's picture

"Japan should close their exchanges as they have more pressing needs right now than feeding casino frenzy"


What's wrong with price discovery?

Sun, 03/13/2011 - 21:32 | 1048011 Yen Cross
Yen Cross's picture

The Macau Effect?

Sun, 03/13/2011 - 21:27 | 1047950 km4
km4's picture
Hacker group plans BofA e-mail release Monday | Reuters A double whammy as the Bernank says hamana-hamana-hamana
Sun, 03/13/2011 - 21:17 | 1047965 Lord Welligton
Lord Welligton's picture

Stock Market Tsunami.

Watch all markets close today (Monday).

The algos can hack it. Not designed for it.

HFT goes loco.

Plug pulled.


Sun, 03/13/2011 - 21:42 | 1048052 Saxxon
Saxxon's picture

Yes that is how they will work it when the day comes.  The retail crowd will be unable to log in while the bots sell in the dark pools.

Like someone here said a month back, when the shorts were getting more & more frustrated, "Some day you will wake up and the DOW will be down 10%."  Nothing will stop these bots.  It will like something out of Terminator.

Sun, 03/13/2011 - 21:23 | 1047988 Lord Welligton
Lord Welligton's picture

"Bahrain calls for help as police are routed"

"Bahrain has called on neighbouring Gulf states for policing help after anti-government protesters routed riot police in a pitched battle that covered parts of the capital in teargas."

From the FT.

Not looking good there.

When they say "neighbouring Gulf states" do they mean Saudi Arabia?

Sun, 03/13/2011 - 21:38 | 1048034 High Plains Drifter
High Plains Drifter's picture

Yeh they want their fellow soldiers in arms , the Saudis to come across the causeway with two reinforced tank battalions and crush this rebellion. But wait. The king is busy with his own problems , so sorry, no help comes your way.

Sun, 03/13/2011 - 21:36 | 1048030 High Plains Drifter
High Plains Drifter's picture

Hey they got their own chair satan over there, making money out of thin air.....

Sun, 03/13/2011 - 22:07 | 1048140 anvILL
anvILL's picture

BoJ injecting 12 trillion JPY!

Sun, 03/13/2011 - 22:35 | 1048300 PulauHantu29
PulauHantu29's picture

How long will it take gold to hit $5,000?

Mon, 03/14/2011 - 06:43 | 1049485 MiningJunkie
MiningJunkie's picture

Just buy buy buy - 'dem presses is rollin' agin !

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