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The Yen move last week was extraordinary. The "explanations" that the main stream offered up - as they have to within 60 seconds of any market move - of " repatriation" etc etc - sounded like hogwash to me. All rationalizations and brain-dead art-history majors writing headlines for Monkey-Watch. Ignore it - you'll be better for it.
The only thing that usually explains these relentless one sided moves is ....... hedge funds being liquidated....margin calls. I bet a lot of the hedge fund geese were flocking to the Long Japanese Equities/Short Yen trade. There is even an ETF that does this - a sure indication of a crowded trade.
Dont feel too sorry for the leaders of these hedge funds though. As we noe know - hedge fund managers are rennaissance men/ poets - a total loss only brings out the best poetry as they unload their pitiful little pretensions to philosophy/literature - on their hapless investors . Before moving on to even bigger funds. It is indeed poetic - this seamless dance of the Treasury/Fed/HedgeFunds and the TBTFs. Its like a perfectly orchestrated Kabuki dance.
So what, the +$100T in debt is still there. It's never going away......
You have to keep in mind the mindset of these mostly Ivy League hedgies. OK - imagine you are at a weeding in the Hamptons and are a 32 year old male - Ivy all the way. Now - who has the advantage in attracting the single women - the brand manager at P&G or the hedgie who was all over the news lat week about losing $10 Bil - with his poetic/ agonized final letter - I mean - No contest .. Right?
Interesting chart on radiation doses:
Target of 1220.
At least the PR machines didn’t just recycle the “fat finger” story they tried to pedal to the masses in August 2007. 4% USD/JPY is the sound of the conductor losing control of the orchestra (again). Institutions can make margin calls to the little hedge fund rascals, but loans large enough to require syndication, are executed under fixed terms (e.g. the Institution is holding the bag, unless it has a handy derivative with a solvent counterparty). Look for the central banksters to reopen the drive-by windows in the coming months to many additional forms on newly irradiated toxic bank paper.
Good news all around;
Car dealers already raising Japanese car prices
Nuke plant workers flee as smoke and radiation increase
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