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Today's Nikkei Plunge Protection Invoice: ¥5 Trillion (For Now)
It appears the earlier speculation by PTI that the BOJ would inject ¥13.8 Trillion in the market to preserve asset prices was a little premature. The BOJ just released the official number and it is a measly ¥5 trillion. And by measly we mean US$63 billion. Add this to the ¥28 trillion already deployed by the BOJ and get an even more modest ¥33 billion, or roughly $420 billion, which is the cost to preserve the Nikkei from plunging for a 4th consecutive day. Yet even with this latest injection, the Nikkei is down almost 4% as of this writing. Should headline newsflow from Fukushima deteriorate, we anticipate that the full PTI number will be not only reach by surpassed very promptly as no amount of taxpayer capital will be deemed too great to preserve the wealth of those invested in Japanese stocks.
From Reuters:
Mizuho Bank said on Thursday that all of its automatic teller machines (ATM) throughout Japan and its Internet transaction system have stopped working.
A spokesman for Japan's second-largest bank said the reason for the outage was not known, although he doubted its was due to this week's power outages in the Tokyo area and eastern Japan or last week's massive earthquake.
Shares of Mizuho Financial dropped more than 4 percent to 130 yen, although they pared losses to trade down 2.2 percent at 134 yen, in line with the benchmark Nikkei 225 average which lost 2.5 percent.
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usd/jpy breaking down fast
All the Japanese were saving their money for a rainy day. It is f*cking raining, and it is coming down hard. This problem is not going to go away any time soon. The first one out of risky assets wins, and wins big.
Told you guys.... B of J was BUYING the Yen... and now, Buying the Nikkei! and selling Yen.
For them to print 54 Trillion+, there is no way that JPY will appreciate...
Now, that was a MOVE!
They will probably monetize Yen after agreeing with Ben to do so... JPY is heading to 100+
ZH readers better go dig up those yen they had buried in the back yard...
Oh wait, no yen, only silver and spam.
Sour grapes from the super-loser.
Unlike you, I'm actually making money in this market...
How's that 95% silver allocation working out for you?
bought it at $10+, now worth $33 +change.
we're not complaining...
You got to have a BOJ if you wanna be with me!
Nuthin's goin on but the rent.
If only we could wean these fixated global banksters off stock market propping we could then see the world actually recover and grow
Look at arrogant Herman Von Rumpuy give Nigel Farage the finger at 2:25 in this video posted today. The whole thing is a hoot.
Nigel Farage: EU has no legitimacy or consent to take military action
https://www.youtube.com/watch?v=XHBMLil4JbI&feature=feedf
That is just beautiful. It requires it's own post.
No way man, proping up entities that are legally obligated to rape and pillage the plebes for fun and profit for a global investor class is the only way to get things back on track.
BONUS TIME!
The Shimokitazawa 6 is a group of 6 hedge funds from Shimokitazawa who act in the interests of the PM to support normal market functions.
¥5 Trillion. That's easy money.
Why don't they just let the Yen appreciate, fix their broken country, and then go QE-crazy once they have a functioning manufacturing base again? That seems like the logical thing to do to me.
They are printing yen to hold up their bargain on the system, not to drive it down to help exports.....
Not worried about the unwinding of massive carry positions - whoever carried those positions are mostly betting other people's money or taxpayers money, they can afford to take their losses.
The japanese exporters on the other hand, mostly intermediate goods makers who supply the huge chinese assemby lines, will have to shift a big portion of production overseas in medium term. This will mean higher input prices for china, even assuming they can source the same quality from taiwan and korea. I suspect there would be few winners. For the US, it must mean higher prices of ipads, 100in led tv or whatever ben wants the children of funny-money wonderland to buy. Its good to be able to inflate away your debt, except joe sixpack's wages cannot go up so what good is a paper reduction in debt? Its even better to be able to print to pay for anything you wish to import as long as the world buys into ben's make-belief perpetual motion printing machine (that is why economists are indeed different from normal humans - too bad they control the world). But it is clearer by the day to the world ben's "make-belief" cannot go on - their last ally ironically is the communist regime CCP and other autocratic (or in the jap case - incompetent) regimes of east asia desperate to maintain status quo. For a while more, americans will feel blessed that its the japs who have to go thru the pains, I remain certain that before 2012, america's pains will far exceed anything they are prepared for.
I bet they'll inject more of there's a drop of more than 5% and theyll do it anytime before end day.
Thats why the Yen went up.
Dow Futes are in the green and im still breathing. Back to my American Idol with Carly Simon... I meant Steven Tyler ( I always get them confused )
Hey, Dont touch my junk
And what good stocks they are
CNBC reported Mizuho had shut down their ATM machines.
...AND, that 10 financial firms demand they shut down the TSE immediately.
No shit!
They should have been shut down on , oh let's say, Monday.
So someone inflated the actual inflation? Someone found out and crushed forex before Asia opened? Who bought that FD?
Repatriation, bitchez.
Anyone else buy EWV before close today? If so, your two cents?
I bought it yesterday....but I`m not sure its going to do much with the BOJ coming every 2 minutes with $30000000000000000000000 and buying stocks to keep things propped up...its a joke.
@Tyler: You meant 33 trillion JPY, not billion.
You are right about the typo. But what's the difference between trillion and billion these days.
In hyperinflation times could be the price of a loaf of bread one day and the previous one.
Print, pump, preserve (stock prices)...rinse and repeat until reactors are dead then go on CNBC and talk about "target inflation at acceptable levels"...the "boys" will NOT allow a bear market to take away their presses.
At 8657 this morning, the Nikkei is still a healthy 8 percent above the 8019 level it first reached in August 1981 -- nearly 30 years ago.
'Stocks for the long term' ... patience will be rewarded! But maybe not in this lifetime.
Can you pen in target for DOWn Sh!t&P!ss as well please,
buy and hold baby, buy and hold
Print stocks, not nukes
".AND, that 10 financial firms demand they shut down the TSE immediately"
Bear Stearns karma...
Unfuckingbelievable and, of course, they take of the 'Breaking News' bulletin and then refuse to speak about it.
I'm surprised the Fed isn't in there helping - it's in as much need for the market to hold up as anyone.
Hmm, sorry, forgot they're a bunch of schmucks...
DavidC
maybe the powers that be are keeping themarkets from collapsing so the rats can jump ship..there are alot of big rats esp big banks. the elite will have all of the wealth out and the 'peons' will suffer like we always have.
Oh...
BOJ just showed up
Question Tyler, has anyone looked into Japan Post Bank holding Group?
IMO, what happened during the GM bond crisis has gone global. Connect the dots with JP bank (Japan Post Bank holding), you will find the villains holding an opposite trading position. This entire crisis is bigger than Enron. You will see shortly.
I wonder how much our own plunge protection team has spent since today's low around 2:15 pm.
Look at the fight to keep US futures at parity...
Surreal...
Watching helicopters dumping something on the nuke reactor #3
NHK
http://www.ustream.tv/channel/nhk-world-tv
A major bank in Japan shutting off it's ATMs isn't huge?
I don't get it.
We don't need no stinkin' ATM's!
I was talking about 'Ass to Mouth' porno...what are you talking about?
The figures may need updating, the BOJ has $80 billion was put into the money market so far today in two operations. I would expect even more today.
As of Wednesday, the net amount of new money this week from the BOJ was $158 billion, with about $100 billion rolling off Thursday. So right now, which may well change later, the net amount of new money this week is about $138 billion.
This compares to the $1000 billion BOJ monetary base at the start of March, so the money base is up about 15% this month.
It's up to 9 trillion yen so far. I also used the wrong exchange rate above, understating the amount of dollars some, but the basic facts are correct.
There's probably about $200 billion now in net new money this week, a 20% increase in the BOJ money base.
To Tyler and all his fight club clad....today the AXE has claim the end of The Street .Com for years they deserved the title first in the game, first to proclaim bullshit Lord of all financial web-sites. I have noticed of late , a defection of writers, of any skillful blogs, of and one that is half way sane...(shark and collins) the rats have left the ship. While Tyler and his followers have feed the brain and trading soul for the last few days. Real Money has again become a cesspool of shit, useless for an intelligent investors..die as you should Jim(I can't believe Goldman hired you) Cramer.
One day rally in the Nikkei yesterday. That didnt last long.
How about using a trillion or so to help the people who have been greatly affected by everything? You know kind of like the $10 I donated with my cell phone the other day, except about a trillion or so more.
Has anyone else noticed that copper has held up especially well? Even more so when compared to silvers dive. To me it seems copper should be at more risk to dive when the risk goes off and silver should be part of a flight to safety. Even more so when the warehouses are bursting with copper and silver can't be found anywhere. That Blythe, she sure knows how to steer a market (and crush my bets). I am beginning to think I should never ever bet against that one.
The did their version of the plunge protection to the market tonight. Because the market was down in japan to -468 and now it's -190 and fighting with that.
Dont worry...the BOJ will come in and buy up stocks to stop the fall!!
On Tuesday the Topix nearly reached its 2008-2009 lows. Below 800 it's a much better long than the SP or any other overvalued developed stock market.