Bank of Japan

Tyler Durden's picture

Crashing Yen Leads To Record Number Of Japanese Bankruptcies





Last week, Zero Hedge first showed a chart so simple, even a Krugman could get it: at this point (and really ever since USDJPY 110 and higher), any incremental Yen devaluation is destructive for the Japanese economy, leading to an unprecedented surge in defaults. And here is Japan Times confirming what we said, with a report that "Corporate bankruptcies linked to the yen’s slide hit a new record in November, highlighting the strains on small and midsize companies as Prime Minister Shinzo Abe campaigns for re-election on his deflation-busting economic strategy."

 
Tyler Durden's picture

BOJ Scrambles To Bail Out ECB Gong Show, Sends USDJPY Over 120





Stocks are down... EU bonds are down... EURUSD is up, and Draghi is not providing his usual promises. Cue The Bank of Japan proxies buying USDJPY to ignite some momentum in risk assets... USDJPY just broke above 120 (for the first time since July 2007)... ran all the stops then tumbled back down...

 
Tyler Durden's picture

James Montier: "Stocks Are Hideously Expensive" In "The First Central Bank Sponsored Bubble"





"The stock market just keeps zooming up. A low equity allocation must be hurting you now... For all purposes, this is a hideously expensive market. I don’t care if it’s a bubble or not. It’s too expensive, and I don’t need to own it. That is the problem. This is the first central bank sponsored near-bubble. There is just nowhere to hide... but... to think that central banks will always be there to bail out equity investors is incredibly dangerous."

 
Bruce Krasting's picture

Closing in on One Twenty





Is this weakened system able to absorb a spike in one-directional volume? Will it step up and keep order? Or will it back off and allow volatility to roar?

 
Marc To Market's picture

All About Debase: Not





Can there be a currency war without victims?  Why hasn't any official accused Japan of a currency war? 

 
Tyler Durden's picture

Is The Long Dollar Trade Over?





It seemed almost too obvious. The European Central Bank was imposing negative interest rates and devising new quantitative easing schemes to combat the growing threat of deflation; the SNB was buying foreign currencies in "unlimited quantities" to cap the value of the Franc; the Bank of Japan was madly printing Yen in a desperate frenzy to finally stir up domestic demand; and then the Bank of China responded with its own rate cuts. All this, while the Federal Reserve was quietly ending its quantitative easing policies and even hinting at forthcoming (2015) rate hikes. The long dollar trade, and all it's various expressions, soon became one of the most crowded trades of 2014.

 
Tyler Durden's picture

The Three Reasons Why Moody's Just Downgraded Japan From Aa3 To A1





1. Heightened uncertainty over the achievability of fiscal deficit reduction goals and containing debt
2. Economic growth policy uncertainties and challenges in ending deflation
3. Erosion of policy effectiveness and credibility could undermine debt affordability

 
Tyler Durden's picture

"Why Anyone Believes Printing Money Will Leave Us Better Off Is Beyond Me"





The big selloff in 2015 will come from housing and housing-related investments as the marginal cost of capital rises through regulation and through “margin calls” on banks as their profit-to-GDP ratios grow too high for the economy to function properly. The dividend society is here and the true manifestation of Japanisation is not a future event but a thing we are living in right now…

 
Tyler Durden's picture

"Now That's What I Call A Bubble"





"Then when the [Bank] called time and the bubble began to deflate, everyone watched in disbelief as layer upon layer was painfully peeled back and the mess of what had really been going on became plain for all to see."

 
Tyler Durden's picture

This Country Will Be The Next Zimbabwe...





Meanwhile, in politics and economics we live in a fantasy world. The feds claim to improve our economy. We pretend to believe it. Did a central bank ever add one single centime, one peseta, one zloty or one fraction of a mill to the world’s wealth? Not that we are aware of. But all over the world, central bankers pretend to sweat and toil on behalf of mankind – correcting… adjusting… nullifying the decisions of honest men and women going about their daily business. Interest rates are too high! Inflation is too low! Not enough demand! Too much savings! They are omniscient as well as all-powerful.

 
Syndicate content
Do NOT follow this link or you will be banned from the site!