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One can only watch this devastation with horror. USDJPY drops to 76. Unbelievable. Many Wall Street FX desks are blowing up right at this moment.
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This is good for Japan, considering they'll be importing more than exporting. It's strategic.
Domestic production is so overrated anyway. Japan can just follow our lead for a jobless recovery.
electricity-less recovery
That's the way I see it too. I suspect global re-insurers (Swiss? et al) are also buying yen.
Everybody buying yen will have to sell something liquid.
EURCHF down to 1.25
Currently doing 0.5 - 1% swings every second or so. Normal...
Risk Off... like the Lights inTokyo.
Chinese will be dancing on the Graves of the Japanese Economy. Steel, autos, electronics. You know they are coming in for the kill...
Laughing and high fiving each other all the way; they haven't forgotten the Japanese invasion; the rape of Nanking, etc. etc.
if u have funds left, short the ponzi S&P. USDJPY carrytrades triggered the flashtrash...
junk: May 6 USDJPY 95 down to 88, Before the Dow crashed. Thats a fact.
Japan mass dump of all US treasurys????????????
believe me. They would only sell US Treasuries as very very last resort. Why do u think they sell what in their eyes is STILL a safe heaven?
I think if I was in Japan my perceptions of what is actually safe would be dramatically changing right now.
now watch for the defaults on the hungarian and polish swiss franc mortgages
no closer attention to the Yen mortgages in Portugal and Spain...
Why does the currency move so much more after the US market closes? Anyone?
The currency market (Forex = foreign exchange) is open from Sunday 1:00 PM Eastern (?) thru Friday 4:00 PM Eastern (?) without closing. It is global. There is always a market open somewhere.
Perhaps unmanned helicopters should be tried. With so much at stake it is hard fathom the tentative nature of the efforts.
At this rate, Japan will be able to buy earth with spare change. The whole Japan nation will be landlord of Earth.
The last time this happened was in 1995 -- right after the second biggest earthquake Japan has ever seen. Almost an identical pattern, too (even leading up to the earthquake -- so weird). Check out the aftermath -- over the course of the next couple years, the yen nearly halved in value against the dollar. Based on the last episode, this is a very good time to be carfully loading up on yen shorts.
Don't forget the incident of 6-8 October 1998, when the yen popped from about 136 to 110 to the dollar -- a move unprecedented since floating rates began in 1973.
Rumor had it that a hedge fund -- Tiger? -- was forced to close a carry trade in cannonball fashion. But the facts were never fully confirmed, as far as I know.
Reason I remember the incident is that I was long a million USD (an unhedged commercial contract, not forex) against the J-yen, and dropped a cool $250,000 in 72 hours. Talk about a 'WTF' moment!
the night the yen carry trade died. with a vengeance.
And Bernanke already blew his whole wad. Now what? Another 2 Trillion Dollar Immergency Bail Out to keep Markets up? Can Americans afford it?
Americans? No
The Bernank? Yes
Looks like for the rest of QE2 and all of QE3, Ben Bernanke and the Fed will be buying Japanese Yen instead of US Treasuries, municipal bonds, or RMBS/CMBS.
Nothing to worry about gentlemen... nothing at all.
http://www.huffingtonpost.com/2011/03/16/japan-earthquake-economic-policy_n_836623.html
Open question to the Guest Posters: Do events in Japan qualify as the catalyst referred to by those who have been warning of a coming currency crisis?
Martin Armstrong contends the 1907 panic was started by the 1906 San Fransisco earthquake. The flow of capital in a gold backed economy created stresses that ended up being deflationary.
If we don't get QE3, ... be nimble...
I smell more US Bailout $$ AIG isn't doing well as it is
Oops! I think I should have said the Fed will be buying US Dollars. The Japanese Yen doesn't need anymore help on the demand side.
Skip right to QE18. This time shadow banking will need 10-20trillion and quick.
Got gold?
The past week's events are proof that reality eventually catches up with fiction and global economies predicated upon debt have been shooting us warp speed into a scenario such as this.
Bottom line: Debt is never the answer and saving for a rainy day will always trump kicking the can down the road.
Fast Money just said it's the 'buying opportunity like they've never seen'
Truly, honestly, unfucking real.
Dark pools had these trades firmed up before the close...they just are reporting them and guess what they shorted it because they could from 80.20 on down
Ben will import the reactor waste onto the Fed balance sheet. It will actually improve the Fed balance sheet.
+1 Awesome.
Does this mean everyone is getting out of their Japan investments and cashing out in Yen. IMO, it is going to be bad if the Nikkei open, although I'm wrong 50% of the time I say IMO:)
Rumors of buyers setting up in the 73-75 zone...wowza
I don't get it. Isn't this more or less a reflection of the Japan Equities sell off that has been happening over the last couple of days? People are liquidating Japanese Equities into YEN, which in turn then YEN rises against the dollar. Am I wrong?
Obviously I agree.
Obviously.
Some bought at 76.55!
Mark Carney has popped from Ben's pocket again and is frantically punching out more and more loonies. Gotta love those GWN lapdogs... doesn't look like it's helping much so far.
Follow the BP model. Expect all the leaders and execs to be lying, everything is really much worse than what they are saying, and keep laying on the shorts while they say things really aren't that bad (level 4 emergency, not a 6 or 7). Might get some bounces, like EWJ from low 9's to 10 yesterday, but stay in it (today back down, no worries). Then, expect some news like BP gave, Containment cap getting put on the spill (electric line getting sent in), sell those spikes, and ride down some more.
When to buy though, if I knew that I'd be rich by now.
Haven't seen this kind of chaos since the US market collapse in 2008/early 2009
Before 7 pm we will see 79.80 to start.
By tomorrow morning, we should be in the 81-82 range
NY time 8 pm is 9 am in Tokio. And yes, they actually managed it almost. Well seen! Though i don't see anything above 79 in the forseeable future. I am short at almost ur price :)
NY time 8 pm is 9 am in Tokio. And yes, they actually managed it almost. Well seen! Though i don't see anything above 79 in the forseeable future. I am short at almost ur price :)
NY time 8pm is 9am in Tokio. And yes, they actually managed it almost. Well seen! Though i don't see anything above 79 in the forseeable future. I am short at almost ur price.
Investopedia explains Currency Carry Trade
Here's an example of a "yen carry trade": a trader borrows 1,000 Japanese yen from a Japanese bank, converts the funds into U.S. dollars and buys a bond for the equivalent amount. Let's assume that the bond pays 4.5% and the Japanese interest rate is set at 0%. The trader stands to make a profit of 4.5% as long as the exchange rate between the countries does not change. Many professional traders use this trade because the gains can become very large when leverage is taken into consideration. If the trader in our example uses a common leverage factor of 10:1, then she can stand to make a profit of 45%.
The big risk in a carry trade is the uncertainty of exchange rates. Using the example above, if the U.S. dollar were to fall in value relative to the Japanese yen, then the trader would run the risk of losing money. Also, these transactions are generally done with a lot of leverage, so a small movement in exchange rates can result in huge losses unless the position is hedged appropriately.
Thank you. Now I know why we're screwed.
We're screwed because some people actually call THAT SHIT a job.
+1
+ 1 more
Well fucking said....
That is probably the most truthful thing I have heard all day!
Yes, and some of those people have made a lot of money today.....
.
There goes the US Dollar Index. 76.15 and a little bounce.
And Jamie Dimon said there are no black swans! Well F**k you Jamie!
http://finance.yahoo.com/news/Jamie-Dimon-These-Days-People-siliconalley-3186293793.html?x=0
© by vitoox - Sell The Fucking Rally.
china wants to promote their currency into the mainstream? they're negotiating with the us right now. for a share of reserve status power they in return will 1. sell all their yen immediately 2. loan japan money to defend their currency 3. fund reconstruction of japan
I like the idea China would capitalize on this crisis, but why would they sell Yen now? If they want to become a country with reserve currency, they'll de-peg and loan Yuan to Japan, which will exchange them for Yen.
I'm no currency expert, and maybe I misunderstand the global curency game, but I think the idean is to create demand for your currency, and that means lending it outside your country.
Am I dreaming or have humans actually taken over computers this time??
I think it's safe to say Japan may start liquidating US bonds.
Comment above on buyers setting up at 73, WOW!
This is just a rumor I am starting, but I hear that Tepco is going to encase the nuclear site in Yen.
Perhaps a protective encasement of iPad's would work?
HEEEEERRREESS Cramer!!!
First time I watched in about 7 months. Cannot wait to here this.
Same old shit. You are responsible for me enduring 10 minutes of him. Kudlow is worse.
Hang on little more, BOJ is comming in 20
Jim Sinclair (JSMineSet) said he's hearing Japan won't sell US Treasuries, they have a deal with Bernanke, all the 'dollars' they need.
Makes sense to me - If the Japanese want cash, they can get all they want directly from Ben ('currency swaps' etc.) more discreetly than by a US bond fire sale. 'Win win' from the two central banks' points of view.
How the hell can they print up and disperse $185B in four days and have their currency go ballistic? I know about the repatriation of funds and all but I would have expected the currency to go down with all that printing.
Shhhh....Was that the sound of a bubble bursting!
http://www.forecasts.org/yen.htm
what is funny is the forecast for the month - of yen to dollar - expected 81 with a +-2 - guess they did not get that correct.
Wait a minute.... US dollar and Yen is very strong now. I won't be surprised Chinese are getting rid of their treasury and their US dollar reserve. Back in the August, China was caught buying Yen and Korean Won. If they still have them, I bet they will be getting rid of them now..
OMG, video of The Bernank riding the dollar.
http://vimeo.com/9970489
My question is - why did it happen all at once - and right at 5p CDT? If many different institutions were selling USD wouldn't the appreciation happen more slowly, over time? It had to have been a massive order. So is this evidence of the BOJ selling Treasuries to raise JPY?
5 pm to 6.30 is the thinest market, so it's easiest to take out the stops.
Plus usually all forex acount doing cleaning at this time.
If you can keep your head in situations like that, you have already made it. Sadly i was jumping around my room doing a mad mix of praying and laughing hysterically.
+1 or -1 depending
BOJ online, everything should be fine now
no panic
Wow, that drop requires a bunge cord. Japanese repatriation of Yen.
Japan firms loaded up on US junk debt. Look there for the next fire sale.
HELL HAS a FLOOR. Bitches!
Tis beginning...reparation trades and slam down on US denominated assets. JAPAN IS SELLING!
Its pronounced NUCULER...
http://www.youtube.com/watch?v=vlHEJtflcmo
Our intrepid fearless leader, first President is preparing an additional showing of his time tested dance steps for his adoring audience.
Main stream media is Down in Rio with the Pez.
Talented people in Warshington are dealing with the minor details, thanks Gentle Ben.
endaka saigai
this strength just permits them to print the shit out of the yen..wtf is the problem here?
ASX open, down a little, nothing to drastic here....
"down a little" after 20 minutes has turned into "quite a lot", at 2% or so.
Silver and gold look to be peeping their head's out from under the covers. If they see 34 and 1400 in short order, it's Thunder Road for the Bugs.
Love or hate him, Jim Rogers has been dead-on fu*king right on this trade!
Since all this started in late 2007, Jimmy has been long the Yen.
On a realitive basis, the Yen has absolutely destroyed the dollar!
I regret ever mentioning the possiblity of me selling my gold.
I absolutely love days when the snot is kicked out of every other asset class but Gold & Silver ;)
Its cause he's right that we love him. I hear Ben B can be very charming, but when it comes to his economics...
Anyone long mauritian rupees???
http://www.lse.co.uk/fx/MURJPY
The 3rd strongest currency after JPY and CHF
Nah, just long marijuana doobies.. *eer!*
Isn't the Paul/ Bernack fight still on for tomorrow?
Is there a hearing scheduled tomorrow?
yes, at 10:00 at Rayburn building
Congressman Paul announced his next subcommittee hearing scheduled for Thursday, March 17th at 10am in room 2128 of the Rayburn House Office Building.
The hearing will “examine the relationship between monetary policy and rising prices (with particular focus on food and energy prices).”
Clarification:OOps, should be fun even without the Bernak there
Thanks.
Something to look forward to, at least.
Not expecting much, however. ;)
Watch japanese TV in English here: http://de.wwitv.com/tv/6810.htm