Today's Nikkei Plunge Protection Invoice: ¥5 Trillion (For Now)

Tyler Durden's picture

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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bob_dabolina's picture

usd/jpy breaking down fast

Fish Gone Bad's picture

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.

What does it all mean's picture

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+



Math Man's picture

ZH readers better go dig up those yen they had buried in the back yard...

Oh wait, no yen, only silver and spam.

tmosley's picture

Sour grapes from the super-loser.

Math Man's picture

Unlike you, I'm actually making money in this market...

How's that 95% silver allocation working out for you?


Harlequin001's picture

bought it at $10+, now worth $33 +change.

we're not complaining...

Pladizow's picture

You got to have a BOJ if you wanna be with me!

Nuthin's goin on but the rent.

Racer's picture

If only we could wean these fixated global banksters off stock market propping we could then see the world actually recover and grow

Michael's picture

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 

John McCloy's picture

  That is just beautiful. It requires it's own post.

Alcoholic Native American's picture

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.


Judge Judy Scheinlok's picture

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.

malikai's picture

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.

Spitzer's picture

They are printing yen to hold up their bargain on the system, not to drive it down to help exports.....

Itsalie's picture

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.

Id fight Gandhi's picture

I bet they'll inject more of there's a drop of more than 5% and theyll do it anytime before end day.

Spitzer's picture

that Japanese investors would bring home cash from abroad to help finance reconstruction from the disaster in northeast Japan.


Thats why the Yen went up.

plocequ1's picture

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 )

plocequ1's picture

Hey, Dont touch my junk

max2205's picture

And what good stocks they are

Boilermaker's picture

CNBC reported Mizuho had shut down their ATM machines.

...AND, that 10 financial firms demand they shut down the TSE immediately.

No shit!

lord of the fire's picture

They should have been shut down on , oh let's say, Monday.

Misean's picture

So someone inflated the actual inflation? Someone found out and crushed forex before Asia opened? Who bought that FD?

homersimpson's picture

Anyone else buy EWV before close today? If so, your two cents?

thebark's picture

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.

speconomist's picture

@Tyler: You meant 33 trillion JPY, not billion.

OuaisBla's picture

You are right about the typo. But what's the difference between trillion and billion these days.

speconomist's picture

In hyperinflation times could be the price of a loaf of bread one day and the previous one.

MiningJunkie's picture

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.

machineh's picture

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.



Racer's picture

Can you pen in target for DOWn Sh!t&P!ss as well please,


Seasmoke's picture

buy and hold baby, buy and hold


Caviar Emptor's picture

Print stocks, not nukes

SDRII's picture

".AND, that 10 financial firms demand they shut down the TSE immediately"

Bear Stearns karma...


Boilermaker's picture

Unfuckingbelievable and, of course, they take of the 'Breaking News' bulletin and then refuse to speak about it.

DavidC's picture

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...


ziggy59's picture

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.

bob_dabolina's picture


BOJ just showed up

Atomizer's picture

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.

Village Smithy's picture

I wonder how much our own plunge protection team has spent since today's low around 2:15 pm.

Boilermaker's picture

Look at the fight to keep US futures at parity...


bob_dabolina's picture

Watching helicopters dumping something on the nuke reactor #3


Boilermaker's picture

A major bank in Japan shutting off it's ATMs isn't huge?

I don't get it.

steve2241's picture

We don't need no stinkin' ATM's!

Boilermaker's picture

I was talking about 'Ass to Mouth' porno...what are you talking about?

Charles Mackay's picture

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.



Charles Mackay's picture

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.

The Axe's picture

To Tyler and all his fight club 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.