Despite 'Promises', Japanese Market Chaos Continues

Tyler Durden's picture

UPDATE 1: Japanese stocks turned negative (NKY -600pts from highs, -1.5% on day; and TOPIX down over 4% from highs); Japanese banks -11% from yesterday highs; S&P futures down 10 points from after-hours highs...

UPDATE 2: *KURODA WANTS TO AVOID INCREASING VOLATILITY IN BOND MARKET (yeah thanks... as useful as saying "we all want to avoid syphilis") 

UPDATE 3: Nikkei 225 Drops below 14,000 - TOPIX down 11% from highs

For the second day in a row, and in spite of comments from Abe and Kuroda on communicating with the market (as Kuroda says BoJ Monetary easing sufficient), Japanese capital markets are out of control.

JPY, after weakening 150 pips from early this morning and breaking back over 102.50 has just given 100 pips back in matter of minutes and is now trading stronger vs the USD on the Japanese session. Japanese stocks have cliff-dived with the NKY dropping 400 points in minutes and TOPIX over 1.5%. JGB futures (prices not yields) have surged back higher to trade unchanged on the day as the correlation we noted earlier - and believe is now critical - has held between an out of control bond market and any further sustainable gains in stocks.

This is not good... as if the JPY carry trade implodes (driven quite simply by a total lack of reward-to-risk given the volatility in the carry currency and loan rates themselves) then what happens to all the levered longs in European peripheral bonds and any number of the 'most-shorted' companies in the US... It seems clear that this is all an experiment to see how markets react - the answer - not well!




30 minutes later...


Where's Maria B and the 'Buy on the dip mentailty' when we need her?

When is Tuesday already??


This seemed to sum it up nicely:



Charts: Bloomberg

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chump666's picture

This is beautiful to watch:

10-yr JGBs to 0.845%

Here comes the stock dump again

Gidas19's picture

"Please do not worry" some smart official said. Great buying opportunity here...

Arius's picture

BOJ lacks communication skills .. thats the problem.

CvlDobd's picture

It's starting to look like a summer swoon where being a ZH'er is fun!

Cdad's picture

LOL...with Nikkei futures down 4%, FT tweets:  "Nikkei recovers as investors pile back in"

Truly the desperation phase of globally interconnected, central bank jawboned pachinko machine "markets".

James_Cole's picture

LOL...with Nikkei futures down 4%, FT tweets:  "Nikkei recovers as investors pile back in"

Technically they're sort of correct. Who's piling back in is the question though..

The Nikkei 225 initially recovered some poise on Friday morning, erasing about one-third of the 7.3 per cent of losses suffered during the worst daily rout in more than two years on Thursday.

Ahmeexnal's picture

So all the muppets who cackled at cocktail parties about how they would become billionaires by going long the Nikkei and short the JPY are suddenly going broke. Let them eat shit.

Arius's picture

i have a suspicion it is the same people who are SHORT MINERS ... this party is just getting starting... Soros will prove to be right again!


London Banker's picture

Soros once said, "When I want to sell $1 billion, I start by buying $50 million."  If he has publicly said he is buying miners, you can bet that behind the scenes he is offloading them by the cartful.  Remember in January when he puffed gold, and how his most recent filing shows him unloading it into the bull market that followed? 


Arius's picture

Yes, thats exactly the point.  Publicly he said he is selling gold (GLD); the buying of call options on Junior miners was disclosed with quarterly filings (no word at all).  Below is a link analyzing Soros actions by someone smarter than me.  Just note, we are living in very unsual times, at such times one needs to really follow the smart money who have the inside clue:

malikai's picture

I wonder what the guy in the JGB ad with all the cash and chicks is doing right now.

Surly Bear's picture

"we all want to avoid syphilis"

Hell, I'd like to avoid it, if possible....

Meat Hammer's picture

(yeah thanks... as useful as saying "we all want to avoid syphilis") 


HA!  Brevity is the soul of wit.

Lore's picture

Re: BOJ lacks communication skills

"What we've got here... Is a failure to communicate."

Sylvia Plath's picture

At least the JGB's are stable... My Kuroda!

caconhma's picture

The situation is quite clear: the USA are destroing one more currency that was competing with US$. At the same time, Jap government and JCB are also ruining the entire economy.


China must be very happy since Jap become very dependant on China trade.

CheapBastard's picture

"7 Ways to Stay Calm in a Stressful Situation"




1. I denitfy the casue of your stress;

2. choose response;

3.Take action;

4.Make a plan;.......and so on.....................then...........

.... run like Hell!


alphamentalist's picture

If JGBs get back to 1% I will be sorely tempted to load up.

Hey, MoF, tell me again how many birds I can pull by being long your shite paper?

ekm's picture

Nippon plunge protection team is inexperienced.

Once enough experience is gathered, they'll do well.


I'm sure US's plunge protection team will train them properly

francis_sawyer's picture




Political_Savage's picture

Hi Francis... I'm stalking you
You're funny... And anti-Semitic

Disenchanted's picture

I thought "it was just a religion."

What does semitic(pro or anti) have to do with religion?


Especially a religion allegedly practiced by Caucasian Khazarians...


How important, in quantitative terms, is that “presence” of the Caucasian sons of Japheth in the tents of Shem? One of the most radical propounders of the hypothesis concerning the Khazar origins of Jewry is the Professor of Mediaeval Jewish History at Tel Aviv University, A. N. Poliak. His book Khazaria (in Hebrew) was published in 1944 in Tel Aviv, and a second edition in 1951.[5]

In his introduction he writes that the facts demand — a new approach, both to the problem of the relations between the Khazar Jewry and other Jewish communities, and to the question of how far we can go in regarding this [Khazar] Jewry as the nucleus of the large Jewish settlement in EasternEurope. … The descendants of this settlement — those who stayed where they were, those who emigrated to the United States and to other countries, and those who went to Israel — constitute now the large majority of world Jewry.


This was written before the full extent of the holocaust was known, but that does not alter the fact that the large majority of surviving Jews in the world is of Eastern European — and thus perhaps mainly of Khazar — origin. If so, this would mean that their ancestors came not from the Jordan but from the Volga, not from Canaan but from the Caucasus, once believed to be the cradle of the Aryan race; and that genetically they are more closely related to the Hun, Uigur and Magyar tribes than to the seed of Abraham, Isaac and Jacob. Should this turn out to be the case, then the term “anti-Semitism” would become void of meaning, based on a misapprehension shared by both the killers and their victims. The story of the Khazar Empire, as it slowly emerges from the past, begins to look like the most cruel hoax which history has ever perpetrated.


Yup, I'm gonna keep beating this horse.

shovelhead's picture

You do understand the words hypothesis and fact are not synonymous?

As the lady would say, "Quelle surprise."

They trynna catch me ridin dirty's picture

I don't need a peer-reviewed journal to tell me that the Middle East desert landscape of 2,000 years ago was not populated by guys who look like Larry Summers.

Disenchanted's picture

My own 'lying eyes' seem to support the hypothesis much more than your "fact."

They trynna catch me ridin dirty's picture

Gotta love the absurdity of being called "antisemitic" for criticizing the behavior of individuals who have little to no "Semitic" blood in them to begin with. These are the times we live in.

francis_sawyer's picture

@Political ^^^... Wanna go there?... I got shit to do today, but I'll play [for now]


Item #1: I've said a million times before... 'IT.HAS.NOTHING.TO.DO.WITH.RELIGION'... So for all you folks who blame f_s for beating a dead horse... It's really because all these other mf'ers can't get that idea through their dome.

Item #2: All I care about, relative to the topic, is free speech... If a person can make a rightful argument about something, which I've done 1000x [sticking to the 'asymmetry' aspect, which I don't need to articulate again, is easy to confirm, & has been uncontested, for 3 years now, on ZH]... If a person, therefore is making 'truthful' statements [with regards to the disposition of the asymmetry], then it should NOT be considered 'bashing' [or any other such perjorative]...

Item #2a: Notwithstanding 'Item 2'... I get sick & tired of efforts to cloud the distinction of any 'plural entity' who may be asymmetrically culpable... Let's call it what it is... 'DENIAL' [pure & simple]... The most recent policy maneuver by ZH [due to legal arm twisting] is a perfect example of this... Here's the logic stream...

1. The, now famous, Tyler comment, "Oh for fuck sake" [hereinafter referred to as, 'OFFS'], not only pointed directly at the culprits [probably a mistake out of exasperation], but identified the 'method'... [vis-a-vis 'lawsuits']

2. To that end, and to become 'in compliance', a notice had to be put up on the webpage... Note: the word 'compliance' is 100% coercive because there is no natural law that exists which limits free speech... It is only something latched onto by 'plural entities' who then use it to their tactical advantage [mostly banking, MSM, activism, & MSM]... When that pressure is applied, it achieves the desired result mainly to avoid the 'nuisance' factor which would otherwise complicate the lives of the accusees...

3. Furthermore, this maneuver had the effect of silencing an entire planet, solely based on the location of a webserver in a minute jurisdiction... [once again, asymmetric leverage applied]...

4. Now finally, let's get to the 'PLURAL ENTITY' in question... 'SomeBODY' [plural entity] went the distance to arrange this hassle... Just like 'money doesn't print itself from within limestone edifices', the paperwork [probably 'legal threats & such'] didn't just print itself up... I'm guessing, the 'Syrians' weren't responsible [hell ~ can't even get any internet out of there recently], might as well apply that to 99% of Islam as well... I'm guessing the NAACP isn't active in Switzerland... Doubt it was the Chinese or the Indians [where you've just wiped out half the worlds population right there]... Wasn't Castro... Probably wasn't even the LGBT [though no 'race' or 'religion' definitions could be applied there]... 'Luciferians'????... Ha! That's a good one... Show me where it is on the books in Swiss Law that 'protects' against discrimination towards 'Luciferians'...


I'm running out of ideas here...

Ghordius's picture

ok, ok, I get it, it has nothing with incitements to hate/persecute/misrepresent a religious group

now the next question: is it about hate/persecution/misrepresentation of a genetic group, also known as racism?

Swiss Law protects ALL groups from hate/persecution/misrepresentation on the ground that you can't make a group responsible for what single individuals out of this group do

the origins of this sentiment traduced into law (of course the PC harpies from the NW quadrant had some part in the pushing the Swiss into this) is the horror for this old germanic tribal legal principle called Sippenhaft - badly traduced in English as "kin's liability" and it's more global brother, the blood feud

now, I have been dragged into blood feuds and I don't think I hate anything more, but anyway, when you start with Khazarians, you are talking about a group (probably cultural or bloodgroup)

how big is this group? how do you define it? if you define it by blood or culture, how do you intend to differentiate between alleged active members in a conspiracy versus the non-active, and therefore innocent members of this group?

because if you don't, then it's you engaging in a criminal conspiracy, according to Swiss Law - and I can't blame them

Disenchanted's picture

Is there a Swiss law about one group(lets say it's a 'chosen' group) misrepresenting themselves as being of another racial group? Because guess who it is that bandies the term 'antisemite' about the most...Next thing you know all of a sudden "it's only a religion." I believe that's called situational ethics.


Next of Kin ....bitchez.

Ghordius's picture

of course there are few organizations that are more annoying than those "Jewish Defense Leagues" assigning the label "antisemite" to people critizising one of their own - if this is what you are hinting to.

and there is nothing illegal in exposing the way they do it - at least in the land of the Swiss and in most of the eurozone

yet your argument is quite strange, to my old continental eyes. you seem to claim that they misrepresent their own ancestry. so what? where is the beef? would the praxis change in your eyes if they would swap the label to a more correct "persecutor of innocents through group association"?

because at the end here on this continent it boils down to the question: why do you incite against a whole group where innocents are mixed with criminals? Please differentiate

Disenchanted's picture

re: "Please differentiate"

see below

Ghordius's picture

meanwhile to my possibly very ignorant eyes both "Luciferians" and "Khazarians" labels are used as code word for Jews

and the intent does not look like exposing a conspiracy of believers of Lucifer or of a group descending from Khazarians

in both cases they are groups, one of faith, the other of blood

if you find proof of individuals engaged in a criminal act that happen to be members of those groups, it's one thing, and a laudable one

if you are trying to expose the groups as being criminal, then what about their newborn? are they criminal, too? it's really that simple

do you have any idea how annoying it is to have someone that wants to kill you because of what your great-grandfather allegedly did before you were born? I do, and it sucks

i-dog's picture


"to my possibly very ignorant eyes both "Luciferians" and "Khazarians" labels are used as code word for Jews"

In your case, esteemed Ghordius, I think "disingenuous" may be a better choice of words than "ignorant". But, in the case of the likes of 'Francis_Sawyer' and 'Freddie', I fear you are correct.

However, those of us who have studied the Luciferians ... aka Khazarians ... aka Jesuits and Talmudists ... know the very clear distinction between a "master race" and a religion.

And for the god-botherers reading this ... Luciferians are not the same as Satanists. Luciferians worship en-light-enment (ie. knowledge...rule by the "smartest guys in the room"), not some red-faced fellow with horns and a pitchfork!

Ghordius's picture

you catched me there. I'm somewhat fond of claiming ignorance as a imo polite way to encourage response

but I do claim honest ignorance about how you connect the groups. your meanwhile extensive database (I presume) is about individuals who use group affiliation for the advancement of their own cause and that of their allies. in my eyes, politics (which can extend into conspiracy and criminal acts), i.e. the normal behaviour of humans (at least of those aspiring to leadership)

I have ranted lately about putting too smart and industrious people into finance (which should be a boring place, imho), lately, but I can't find the link

what a strange feeling to be positively touched by your "esteemed" - I mean normally it would entail sarcasm, but I can't sense any

see you, esteemed resident Maremmano of ZH, gotta go

francis_sawyer's picture



Don't presume to speak for me on the subject of 'code words'...

If you & I & a coupla other gents sit down for a beer, we can discuss distinctions all night long... I'd consider it 'disingenous' to characterize the presumed value statements of 'OTHERS' on an internet blog... I said above... "I got shit to do"... I gotta do a 12 hour 'burnt ends' brisket for this weekend to serve a dozen family members [and all the other 'shit' that goes along with that]... Was a tablespoon short on the cayenne pepper on the rub mixture so I sent a page out to get some & have a minute here...

@Ghordius ~ I'm committing the sin that I chastized above [vis-a-vis 'presumptions']... But I think i-dog's avatar is 'Snoopy'... Snoopy is a BEAGLE, not a 'Maremanno'... I lived in Umbria for a dozen years & had a Maremmano for 7 of those years... That ain't no Maremanno...

Funny story about dogs & personalities... Maremanno puppies are normally placed with young lambs & other livestock to 'bond' [as they grow up to be 'protectors' of sheep, cattle, & fowl against wolves & other predators... However, I lived in the middle of an oak forest where there were cinchiale [wild boars]... They used to invade in and tear up my lawn... One day I woke up & the boars had shredded my lawn to pieces... So I walk outside & looked at my dog & pointed at the lawn as if to say 'WTF'... The tail went straight between the legs & he was sad for about two days... He was like... Goddammit ~ those things have razor teeth, tusks & weigh 2,000 pounds, what the hell am I supposed to do?... Poor guy... I forgave him...

Ghordius's picture

as often, it's a matter of breeding (Part 1): imo your poor maremmano was a victim of your lack of racism (LOL) ;-)

imo he was sad because you expected from him an attachment to your property or his territory - and he was bred, as you describe, for attachment to "family", i.e. living things - which might include sheep or whatever he was exposed to

nope, the avatar might look like Snoopy the beagle, but I'm quite sure that the true character-totem of i-dog is the maremmano

btw, I have incredible memories of an older, very experienced beast of that breed while hunting boars not far from where you lived

francis_sawyer's picture

Classic 'Charles Schultz' artwork depicts 'Snoopy' atop a doghouse... [often sleeping]...


My dog was a stray who'd been left on the side of the road... [that I took in]... Therefore ~ I don't know his 'puppyhood'... He was 'suspicious' of me for a few weeks but then it all flipped around... He used to bark like crazy at any white van [but otherwise was very normal & the best friend anyone could ever have]... He was even tolerant of the 'hunter's dogs'... The hunters came into the hills in the fall to shoot the wild boar... From late September thru December, all u could hear on weekends were echoes of hound dogs yapping & the occasional rifle shot... Probably about a lost hound every two weeks showed up on my doorstep... I'd telephone the owner who'd then come pick him up...

I had 'owls' too... There was a little covelet in my house [which was about a 300 year old stone structure] that, every May, the owls would use as a nesting place for their chicks... It must have been that way for decades & centuries... My dog used to actually help protect the chicks when they were ready to get going on their own...

tip e. canoe's picture

apologies for interjecting sir dawg, but perhaps the esteemed continental is not being disingenuous at all, but rather suggesting an alternative path to unlock the milleniums-old ghordian knot in which we silly monkeys continue to tangle ourselves?

even if your nose knows (and i have no doubt that its abilities at scent detection are nothing less than par excellence), does knowing the names of the Alphas (and their particular generational methods of operation to get to the Top of the Heap) only get us so far?   are we not still tangled in the same Knot of the same Great Game, only in a different section of the rope?    do not power-seeking individuals & groups thrive on attention regardless of the emotional quality (whether love, fear, hate or defiance)?   if so, aren't we all feeding into the energy vortex of which "They" occupy the center?

a few more interesting questions that i humbly hope one day the esteemed illumi-hedge will explore in greater depth (rather than being continually caught up in Their orbit) :  why do we need Alphas at all?   why are we all wasting our big brain space on their actions when we've already recognized that a society as so structured is incredibly dysfunctional, bordering on self-destructive?   what are the methods by which this Alpha problem can be dealt with once for all, so that it does not continue to repeat itself fractally through endless sadomasochistic cycles?

you've noted one many times (smaller is better or "small is beautiful" as Schumacher wrote).    maybe ghordy is hinting at another himself in his own enigmatic ignorant style.

a little bone to chew on from the lord of anus:

i-dog's picture


"why do we need Alphas at all?"

It's not a question of whether we need them, Tippy ... we have them, like it or not. To attempt to "eradicate" them flies in the face of the diverse genetic makeup of all advanced organisms. So, the question really is: "How do we limit their scope?"

Some of us believe that such "limitation of scope" can be achieved by a social organisation that gives free rein to the alphas to dominate their own small group (to the extent that such small groups - whether family or community - will continue to tolerate them), while subjecting their pedagogery to voluntary competition from other outside groups. Further aggression would be dealt with by all sides holding weapons of mutual assured destruction.

Such a social organisation is often called "Voluntarism" (all interactions are voluntary), or "Anarcho-Capitalism" (ie. free market capitalism...without an 'archy' or overarching ruler).

Of course, such a social organisation could only function without a government (whether democracy, autocracy, monarchy, oligarchy or politburo) except where a governing body of limited scope was agreed between all the sovereign individuals in a limited geographic area for specific administrative purposes. All other services would be provided by contract between individuals and competing service providers.

The early American independent colonies essentially functioned in this way for 150 years, building roads and cities right up to and including the 'Declaration of Independence' and 'Articles of Confederation'. Townships could - and did...thereby changing the 'state' boundaries - change their affiliation from one State to another if they were not happy with the policies or demands of an autocratic state government.

This arrangement only fell apart through the connivance of an outside power that happened, at that very same time, to need a new home outside of Europe and therefore steered the Confederation to a hierarchical Federation - with the creation of a central federal government, which they [partially] controlled, embodied in the Constitution.

It is not too late to try again - even by just a few states or groupings of counties. The information age post the Technology Revolution gives us the tools.

The whole human race must 'grow up' and begin to act as consenting adults rather than as rock-throwing macaques!

The NWO is totally opposed to such freedom of action and wishes to revert to the social organisation of the Dark Ages - except that they plan to replace the emperors of old with a single central global politburo...the ULTIMATE ALPHA!!

tip e. canoe's picture

yes, thanks for clarifying: limitation of scope is a more accurate intention of the question.   i see i poked the right part of the sleeping dog's belly, most excellent response.     

a social organisation that gives free rein to the alphas to dominate their own small group (to the extent that such small groups - whether family or community - will continue to tolerate them)

consent is such an integral part to this, yes?   as far as i'm concerned, if folks want to organize themselves into a form run by an Alpha, more power to them.   but there needs to be an out for those who choose to seek another path, or one that isn't so buried in byzantine language and conjecture that noses that know dare not speak its Name.    live and let live, no?

time to grow up, indeed, especially when the tools are right there at our feet.    no need to waste time to repeat the same story again for the umpteenth time when we already know the end...and the beginning...and the end...

Ghordius's picture

as often, it's a matter of breeding (Part 2): interesting view. dogs are bred (part 1) and macaques have a complex sexual selection

we humans have broadly speaking two ways of sexual selection: the one where we force our females to comply with a political mate selection - which in turn makes societies stable, closed and stratified (think medieval times or castes in India) and the one where we leave them free to choose

both modes have alternated in history, though elites stick to the first more often than "the rest"

now what happens when females are free to choose? they generally (i.e. statistically) go straight into "Alpha Selection Mode". which makes societies more open, more fluid but also less stable. in sociology it's called Hypergamy. Women can't avoid being choosy (they are very limited and committed in their progeny), so they strive for the very best bargain

now the traits after which they select who is Alpha and who is not... depend in part from the society. interestingly power/status alone does not necessarily trigger selection, they might in cases even cause a marriage but not necessarily children from that husband

certain attitudes, particularly power-seeking, intelligence, defiant and outcome-indipendent insuociant bravery bordering to insanity, being able to generate attention (as you say) and a couple of other do (often) trigger sexual selection - even if they might cause dysfunctionality bordering on self-destruction of the single male or the society

this is one of the main reasons why societies very often go through cycles... and one loop of the Knot you call The Great Game

tip e. canoe's picture

ah yes, gordy, it's all about the heat baby!   

depend in part from the society : so interesting how biological responses are triggered through social norms.  like fear for instance.    also good to remember that these norms stem from ~5000 odd years of "patriarchal"-dominated societies.   not to say that matriarchal-dominated ones are any better -- there was probably good reason why they died out along the way.

nonetheless, have you ever heard of the Musuo tribe on Lugu Lake in China?    there's a bunch of good material on them online, but this will get ya started:

"Men and women are very much equals, but the women are just a little more in charge."

riddle me this one: what happens in the cycle of a society when a critical mass of its members discover that they are on a cycle?   and that there is a fork in the road up ahead where one path leads to another repeat of the same cycle and the other path leads to an as-yet-consciously undiscovered new cycle in a much larger spiral?

Ghordius's picture

:-) Did. It. Ever. Happen? Consciously? But, yes, it's a good riddle

Disenchanted's picture

I think it's something like when the Illuminati infiltrated and corrupted Free Masonry. Not all Free Masons subscribe to the Illuminati agenda, and many are not even aware what did happen and what now happens at the top levels of Masonry. As I typed that I was thinking of my own first cousin who is a low level Mason.

In other words there's a global criminal syndicate that uses Judaism as a cover. The rest of the common Jewish folk are used as pawns by that syndicate. The problem is that many of those common folk(Gentiles as well) have bought into the myths and propaganda propagated by that syndicate.


btw 'Lucifer/Luciferians' could well be just another cover for something else...