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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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Wed, 03/16/2011 - 20:30 | 1064209 bob_dabolina
bob_dabolina's picture

usd/jpy breaking down fast

Wed, 03/16/2011 - 20:37 | 1064243 Fish Gone Bad
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.

Wed, 03/16/2011 - 21:35 | 1064582 What does it al...
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+

 

 

Wed, 03/16/2011 - 20:43 | 1064270 Math Man
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.

Wed, 03/16/2011 - 20:46 | 1064290 tmosley
tmosley's picture

Sour grapes from the super-loser.

Wed, 03/16/2011 - 20:50 | 1064307 Math Man
Math Man's picture

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

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

 

Wed, 03/16/2011 - 23:03 | 1065077 Harlequin001
Harlequin001's picture

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

we're not complaining...

Wed, 03/16/2011 - 22:16 | 1064827 Pladizow
Pladizow's picture

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

Nuthin's goin on but the rent.

Wed, 03/16/2011 - 20:34 | 1064219 Racer
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

Wed, 03/16/2011 - 20:45 | 1064277 Michael
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

https://www.youtube.com/watch?v=XHBMLil4JbI&feature=feedf 

Wed, 03/16/2011 - 20:49 | 1064302 John McCloy
John McCloy's picture

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

Wed, 03/16/2011 - 20:48 | 1064297 Alcoholic Nativ...
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.

BONUS TIME!

Wed, 03/16/2011 - 20:35 | 1064227 Judge Judy Scheinlok
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.

Wed, 03/16/2011 - 20:35 | 1064235 malikai
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.

Wed, 03/16/2011 - 20:43 | 1064268 Spitzer
Spitzer's picture

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

Wed, 03/16/2011 - 21:04 | 1064367 Itsalie
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.

Wed, 03/16/2011 - 20:37 | 1064245 Id fight Gandhi
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.

Wed, 03/16/2011 - 20:37 | 1064246 Spitzer
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.

Wed, 03/16/2011 - 20:38 | 1064247 plocequ1
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 )

Wed, 03/16/2011 - 20:44 | 1064272 plocequ1
plocequ1's picture

Hey, Dont touch my junk

Wed, 03/16/2011 - 20:39 | 1064252 max2205
max2205's picture

And what good stocks they are

Wed, 03/16/2011 - 20:39 | 1064253 Boilermaker
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!

Wed, 03/16/2011 - 20:52 | 1064317 lord of the fire
lord of the fire's picture

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

Wed, 03/16/2011 - 20:40 | 1064255 Misean
Misean's picture

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

Wed, 03/16/2011 - 20:42 | 1064262 Freewheelin Franklin
Freewheelin Franklin's picture

Repatriation, bitchez.

Wed, 03/16/2011 - 20:42 | 1064263 homersimpson
homersimpson's picture

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

Wed, 03/16/2011 - 23:23 | 1065183 thebark
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.

Wed, 03/16/2011 - 20:43 | 1064269 speconomist
speconomist's picture

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

Wed, 03/16/2011 - 20:46 | 1064281 OuaisBla
OuaisBla's picture

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

Wed, 03/16/2011 - 21:32 | 1064578 speconomist
speconomist's picture

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

Wed, 03/16/2011 - 20:44 | 1064273 MiningJunkie
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.

Wed, 03/16/2011 - 20:44 | 1064280 machineh
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.

 

 

Wed, 03/16/2011 - 20:52 | 1064315 Racer
Racer's picture

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

 

Wed, 03/16/2011 - 20:58 | 1064346 Seasmoke
Seasmoke's picture

buy and hold baby, buy and hold

 

Wed, 03/16/2011 - 20:46 | 1064285 Caviar Emptor
Caviar Emptor's picture

Print stocks, not nukes

Wed, 03/16/2011 - 20:47 | 1064287 SDRII
SDRII's picture

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

Bear Stearns karma...

 

Wed, 03/16/2011 - 20:51 | 1064305 Boilermaker
Boilermaker's picture

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

Wed, 03/16/2011 - 20:53 | 1064292 DavidC
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...

DavidC

Wed, 03/16/2011 - 20:50 | 1064296 ziggy59
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.

Wed, 03/16/2011 - 20:48 | 1064299 bob_dabolina
bob_dabolina's picture

Oh...

BOJ just showed up

Wed, 03/16/2011 - 20:51 | 1064303 Atomizer
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.

Wed, 03/16/2011 - 20:51 | 1064306 Village Smithy
Village Smithy's picture

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

Wed, 03/16/2011 - 20:51 | 1064309 Boilermaker
Boilermaker's picture

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

Surreal...

Wed, 03/16/2011 - 20:53 | 1064313 bob_dabolina
bob_dabolina's picture

Watching helicopters dumping something on the nuke reactor #3

NHK

http://www.ustream.tv/channel/nhk-world-tv

Wed, 03/16/2011 - 20:53 | 1064314 Boilermaker
Boilermaker's picture

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

I don't get it.

Wed, 03/16/2011 - 23:28 | 1065208 steve2241
steve2241's picture

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

Wed, 03/16/2011 - 23:34 | 1065232 Boilermaker
Boilermaker's picture

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

Wed, 03/16/2011 - 20:56 | 1064329 Charles Mackay
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.

 

 

Wed, 03/16/2011 - 21:50 | 1064678 Charles Mackay
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.

Wed, 03/16/2011 - 20:59 | 1064358 The Axe
The Axe's picture

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.

Wed, 03/16/2011 - 21:00 | 1064369 lord of the fire
lord of the fire's picture

One day rally in the Nikkei yesterday.  That didnt last long.

Wed, 03/16/2011 - 21:33 | 1064592 Hollywood
Hollywood's picture

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.

Wed, 03/16/2011 - 21:42 | 1064621 duncecap rack
duncecap rack's picture

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.

Wed, 03/16/2011 - 22:05 | 1064776 Buck Johnson
Buck Johnson's picture

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.

Wed, 03/16/2011 - 23:27 | 1065203 thebark
thebark's picture

Dont worry...the BOJ will come in and buy up stocks to stop the fall!!

Thu, 03/17/2011 - 03:35 | 1065640 rayban
rayban's picture

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.

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