Overnight Nikkei Heatmap

Tyler Durden's picture

Below is a heatmap of the Nikkei "no news is great news, as is 26.5 trillion in fiat injections" relief rally. Note the main equity outlier, TEPCO, which however has seen its CDS tighten substantially overnight from 390-440 to just 285-315. The reason for the credit melt up is that according to an article, the operator of a nuclear facility will not be responsible for any damage caused by their reactor if it was due to "a grave natural disaster of an exceptional character or by an insurrection." Which simply means that the nationalization of TEPCO will be indirect and that Japan will have to issue that much more debt.

Source: Reuters

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oh_bama's picture

DID I tell you guys BTFD yesterday??

cheesewizz's picture

 Good for them, Now lets see if we can do the same...

Josephine29's picture

What bothered me was this and the thoughts behind it.

However I have to confess concern at two things. Firstly that the Japanese Emperor spoke to his people and secondly that he said that he was “deeply worried”. If you look at Japanese culture that has an ominous tinge to it. Things may have changed a little since the end of the Second World War but the Emperor then managed to avoid saying that they had lost!



He follows and understands Japanese culture and economics and is concerned that this extraordinary event may presage even worse news from the stricken Japanese nuclear reactors...

MiningJunkie's picture

Policy remains unchanged - print, print, print...

Jettison Federal Reserve notes whenever acquired immediately and switch to assets. Cash is trash until policy shifts.

Mentaliusanything's picture

Oh goody the people pay again. Insurance lives to fight another day- who needs them they never pay

gwar5's picture

"The Big Red One" .......was also an excellent movie with Lee Marvin. 

anvILL's picture

Massively long Tohoku Electric Power.
Electric power company with 6% dividend yield and PBR of 0.6.

The only thing I want to buy more than physical silver.

TexDenim's picture

There will certainly be another huge downdraft before this is over. Too soon to get too excited about Japan equities.

johnQpublic's picture

a grave natural disaster or an exceptional character with a giant  erection.

vectisma's picture

"I received a report this morning that there was an important change of data," Gov. Shintaro Ishihara said at a news conference. "I heard that it will not immediately cause health problems."   so thats alright then.. 

Yen Cross's picture

Errr. A nice green map.

LRC Fan's picture

There is way too much money being made, and way too many questions for my liking.  The two biggest in my mind.

1. If TEPCO was going to be nationalized, why not announce it when the stock was 50% higher or whatever it was?  Oh, because gov't wanted to acquire it "on the cheap."

2. If TEPCO isn't going to be held responsible, why not simply nationalize it all along?  After all only the government can blame the weather and get away with murder, inflation, or whatever else they want. 

This has all the makings of the biggest conspiracy ever.  Not that I 100% buy it, but nothing would surprise me at this point.  Nothing.

I don't know the logistics behind it, but common sense tells me the gov't doesn't have the capability to create the earthquake and tsunami with malicious intent.  If they somehow could, I have no doubt they would if something was imminent (fiat collapse, WW3, etc etc) or if they wanted to accomplish something such as printing more yen or more control over the people.  The nuclear situation is a lot easier to see manipulation.  High level Tepco people are basically told "we're gonna melt this down, you can either go along and get rich, or not go along and die" and they obv go along for fear of their lives.  The gov't then evacuates everyone so there are no witnesses, and things just get way worse by the minute.  The prime minister "gets pissed" and starts swearing at Tepco execs on the phone but it's all a front.  No one is in any position to question the Jap gov't.  It's conveniently blamed on mother nature.  Trillions of yen are printed.  Someone tell me why not?  Why wouldn't the Jap gov't do this?  It basically gives them total and complete control over the markets, the money, and people's lives.  As if they didn't have it already. 

It's just so out in the open now.  Markets are obviously manipulated and rigged.  They can open/close them whenever they want, suspend trading then send stocks up 100% or more in a flash.  Rule 48 is invoked but not if the markets melt up 500 pts, only when we are flash crashing do things get invoked. 

To me it's all about incentives.  What incentive does the government have to tell the truth?  Well it depends on how bad things are.  If things are really bad then they could cause a panic and be seen as unprepared.  So they lie and cover up bad news, which erodes their trust but not as fast. 

That's not all.  This *could* all be just a long, drawn out "beginning of the end" where the government literally takes complete and total control of us all and turns us into slaves for the state (as if we aren't already).  What if the gov't is involved/spying/behind things and people like Lew Rockwell, APMEX, Zerohedge, and CNBC (okay that last one is a joke)?  But if the gov't can shut down the internet at any time who says they aren't simply planting people and sites to monitor us and track who is buying gold, who supports Ron Paul, etc?  I don't think they have the ability to track your local flea market coin guy, but who the fuck knows, maybe they have a satellite on him 24/7.  So maybe this is the part where the common/poor/stupid people are brought under control of the state, and then the rest of us can be brought into line once the state has the support of the vast majority to take our gold and silver.  I really laugh when some people here say "but you'll have to get past my gunz first!" as if the gov't doesn't have much, much bigger guns and many more soldiers who will literally die so someone else can grab your Maple Leafs.  Now they may not know everyone who has it, and how much, but it could become quite obvious once people start rioting in the streets, and you're the only one on the block with any food and water.  People will start wondering and put 2 and 2 together and search you for some gold.  They will report you to the government.  If you don't have any, or it's hidden, then you are maybe safe for now from instant punishment but if you don't have any or don't have access then what good is it?  Disclaimer I own gold and silver so if any government thugs are reading this they can fuck off. 

Now, if the government had the ability to cause earthquakes (maybe 1% chance if that), meltdown nuclear plants, spy on us 24/7 without us knowing, set us up by planting someone like Tyler or Lew, etc. then why would it take this long for us to be under control?  The only thing I could think of is that government have this reputation of being huge, bumbling inefficient organizations.  But what if that's by design too?  They make you wait 2 hours at the DMV but eventually gain complete control of you.  They lull you in and trap you into thinking "the government is inefficient, they don't know what they're doing, etc etc" and then BAM it's over.  I for one think the government is very efficient where it counts.  They have complete and utter domination over the money supply, military, police, courts, and markets in general.  Who cares if your magazine gets lost in the fucking mail when it costs you twice as much as a few years ago?  Yet no one will blame them for the inflation. 

With complete control over all markets (stock, bond, interest rate, etc etc), the media in their pocket, and the ability to shut down the internet, I just don't think it's that insane of a theory.  I don't necessarily buy into it 100% but I'm starting to become more and more skeptical every fucking day when I see stories like this.