Japan To "Carry" Europe's Rescue

Tyler Durden's picture

Between an 87-year-old Italian, a bearded American, two Japanese sociopaths, and a world in desperate search of 'yield', the yields on Spanish 10Y debt have collapsed in recent days to 4.50% - its lowest since November 2010 (and Italy at around 3.54% also close to 29 month lows). With the backdrop that no harm can ever come to another government, corporate, or high-yield bond ever again, the $660 billion in excess Fed and BoJ liquidity needs to be invested and why not grab the riskiest stuff there is. European stocks ended mixed with Italy and Spain soaring and the rest in the red or unch. Corporate credit rallied, outperforming stocks, but Swiss 2Y rates remained at 3-month lows. Europe, market indications aside, remains very unfixed; but given the leadership's insistence that the market knows best, we assume we should not expect more austerity or belt-tightening as 'investors' are willing to take the bankers' promises as gospel. Just as a reminder - we saw this kind of 'confidence' before in 2011, did not end so well...

The scramble for yield funded by cheap carry continues...



As The WSJ reports:

Two of Japan's biggest life insurers said Monday they might increase their purchases of foreign bonds and reduce or keep steady their purchases of domestic bonds this fiscal year, as the central bank's aggressive easing program forces big investors to rethink plans. Nippon Life Insurance Co., Japan's largest life insurer, and Asahi Mutual Life Insurance Co., the eighth-largest, both said they will consider putting more new investment money into foreign bonds if domestic yields remain near historic lows as the Bank of Japan.

We are sure this will end well...

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devo's picture

Fuck you, Abe.

Careless Whisper's picture

The Careless Whisper News Update & Threadjaxing


Polo Ralph Lauren (RL) Is Too Big To Jail; Gets "Deferred Prosecution" For Criminal Bribery


California Wants To Merge Its Cap-And-Trade Tax With Canada




TeamDepends's picture

He doesn't care for the cut of the jumpsuit.

kchrisc's picture

Actually Ralph Lauren was prosecuted for not using the "official" bribery channels of reelection "contributions."

They should have "contributed" and then let the pols and crats in the US payoff the pols and crats in Argentina.

As a "punishment" Ralph Lauren will have to pay an "official" bribe ("fine") of $1.6Mil. to the US gov. LOL

Moral of the story: "We can't have you exporting venality when there are so many in need of venality here in the US."              hujel

NoDebt's picture

No matter how dirty your shirt there's always somebody with a dirtier one, I guess.

CClarity's picture

"Europe remains very unfixed" ... ahem, au contraire, I think the "fix" is very much in.

And not only are all the shirts dirty, they stink from the profuse perspiration of anxiety.

hedgeless_horseman's picture



Baby, I watered our garden, lawn, and flowers, but since we cannot turn off the hose, I am going to water the neighbor's weeds, now.  

RebelDevil's picture

Japan to carry Europe's rescue, or Europe to carry Japan's collapse?

101 years and counting's picture

so basically, the Fed and now Japan is funding Europe to keep its debt bomb from imploding?  And when that fails...will Kenya or Guatemala begin printing for Europe?

swissaustrian's picture

Zimbabwe will save us all, turst me!

Cognitive Dissonance's picture

I love the $9.98 shipping for two notes that sell for a total of $2.88.

The seller is following the Gillette model of selling the razor cheap and killing you on the replacement blades. :)

kchrisc's picture

Awesome business model.

Print money like it's going out of style. When the economy implodes as a result, begin to sell the large denomination notes as "novelties" on eBay and Amazon.

Maybe this is what the Berstank is up to. I call dibs on "BigAssBills.com."                 hujel

swissaustrian's picture

The CHF swap curve is flattening just like in spring of 2012.

jubber's picture

Could get very intersting if they call new elections, which is highly likely...with Grillo & Berlusconi getting the most votes, and both anti Euro

polo007's picture

The Endgame is Forced Liquidation - Hussman Funds


NYSE Margin Debt and The Barron’s Big Money Poll charts


disabledvet's picture

"with more coming." as I said before "gold is flooding into the US financial system." system wide no less. Piss off these US based Anglo Saxon banks at great personal risk. they have no problem collateralizing...how about all of you?

LawsofPhysics's picture

There is another trade in here somewhere, thanks tylers.

madbraz's picture

Japanese insurers will buy US and Germany govt bonds, among other AAA or similarly rated sovereign bonds.  They will not invest in Spain or Italy - that's hedge funds mostly.

Dollar Bill Hiccup's picture

Pennies from heaven ...

In front of a steam roller ?

Those things move real slow, but once you get rolled, fuggedaboudit.

Silverhog's picture

Investing in Sovereign dumpsters instead of Gold. Makes a lot of sense to me.....

Cacete de Ouro's picture

You forgot to add an unfuckable lardass to the list....

yogibear's picture

Bubble Bernanke and the rest of the fed are in complete control of Japans printing experiment.

See the future of the US with Japan.

sitenine's picture

Search for yield? Yeah, because this time is different. Idiots.

Glass Seagull's picture



BOJ is the buyer at the moment.  Then Fed, then SNB, then BOE, then mom, then pop, then shoe shine boy, then back to Fed.





Ima anal sphincter's picture

I'm a financial dumb-ass, but even I can see through this shit without understanding all the charts and graphs.

If you have a bunch of paper with ink on them (backed by nothing) and you "rescue" a failing entity with this paper and they in turn rescue someone else (again with little pieces of paper), is it a sham??

Just how long can this go on????

Just like a merry-go-round, you jump on, but end up exactly where you started.

Tombstone's picture

And Benny will carry the world. 

Bastiat's picture

An 87-year-old Italian, a bearded American, and two Japanese sociopaths walk into a bar . . .



Bastiat's picture

Bartender says: Your money's no good here . . . literally. Get out.

falak pema's picture

to avoid mass unemployement, we print and print. Its necessary but its not enuff. We should also selectively deleverage the financial mega banks bigtime as they are the cancer.

to avoid mass mal investment we should : a) bail in mega banks b) break them down c) stifle all naked derivative plays in markets d) curtail all tax havens. 85% of the current credit printed goes to servicing the financial beast. That's how bad it is.

to create new employment we should finance massively infrastructure investments. In alt energy and new urban paradagim memes (transport, infrastructure, new tech, new services). We have to get first world out of ME oil suffocation. Leave it to the third world and build our own energy meme on alt energies. Its tuff and its the only way to avoid wars and to save the planet from this current hegemony built of Oil/MIC/USD fiat crap fest that is polluting the world on coal and oil guzzling. 

Its time for the world to move back to FDR's legacy bigtime and think of creating a gold backed currency that is NOT a national currency of any country or continent. 

kchrisc's picture

Are you new here or did you just fall off the bus?!

"We should also selectively deleverage the financial mega banks bigtime as they are the cancer." Who is this "we" you speak of? The banksters own the gov who owns and controls us--see Boston "man-hunt" for evidence thereof--and the only "we" is you, me and us under their wheels.

Or put another way: they built what they have upon our backs and out of our bank accounts and are now propping it upon our heads.

Put down the "we" Kool-Aide and step away from the delusion and give Mises, Rothbard and/or Hayek a read or just pay attention.

Looks like guillotine weather is approaching.               hujel

falak pema's picture

get lost with your libertarian mumbo jumbo.

"We" refers to the people who need their democracy back and its not going to occur by reading Mises and Miserly Rothbard.

They, the oligarchs, will only be tamed by a popular vote against elitist corruption as under FDR. 

kchrisc's picture

Popular vote?! Like in 2000, 2004, 2008 and 2012?! LOL

You've got the vote while they have NDAA, the "kill-list," drones and gun-grabs! Good-luck with that.

And I wouldn't want to trouble you to read now would I?!           hujel

Gromit's picture

So who will buy the JGBs?