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Despite 'Promises', Japanese Market Chaos Continues
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:
@zerohedge Kuroda wants to debase his currency + inflate away massive debts, without spooking the bond market.Hmm.Good luck with that.
— Money For Nothing (@FedDocumentary) May 24, 2013
Charts: Bloomberg
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Thanks for making plain your lack of expertise. Saves a lot of time.
Guess which market?
can i buy a vowel? i'll buy "O". can i buy another vowel?
OT: thought you might enjoy this article chindit --
http://www.nytimes.com/2013/05/24/world/asia/orwells-house-links-myanmar-to-its-burmese-days.html
PRINT BABY PRINT! .... FLOAT THAT PIG LIKE A PAPER RAFT!
Moar Ripstick, Kurodasan!
Since they denied the canary in the coal mine of gold and silver prices skyrocketing with price manipulation and suppression, I guess having all the miners die in one section of the mine is sufficient warning of what's to come.
Kind sir, Can you please tell me who exactly "they" is?
Central planners. You're welcome. I don't mind helping the short bus kids once in a while.
Keep telling yourself that you delusional goon.
US paper currency is composed of 75% cotton and 25% linen - if I were YOU, I'd invest heavily in both...
Who the hell let this guy in? Go back to trolling CNN douchebag.
You're right! Short bus kids actually go to school, and that obviously never obtained for pondscum like you.
Next time use a plastic bag with no holes.
Q: What does a Japanese mugger say?
A: "Give me all your money or I'll kill myself!"
Hmmm, I don' tknow, that business model seems most characteristic of a Western TBTF bank.
They need to invent some fairy tale of historical persecution and then demand reparations for it, then they won't need to mug anyone.
CBs are nailing in supports. We going green. BTFD my a-hole, this is NY Fed and BoJ double teaming before Europe opens
This is just speculation, but margin calls must be coming today. I bet we still see some rips and dips.
Right now some men are sweating while alternating between looking at the clock and staring at the phone.
How many billions do you think it took from the CBs to get the Japs green?
I don't know, but the levitation of the Nikkei looks oddly familiar.
Yeah, why does it feel like its September 2008 and I'm watching the same plunge>prop>inject>plunge>prop>....? Eventually the CBs call a press conference...
Absolutely. This is jot the end, the margin calls would be all Japan banks. It just shows how sensitive bond yield spikes are to stock panics.
"All that needs to be said, has been said." Pallas Athena
"It's ours to right the great wrong done,
Ten thousand years ago --
The State, conceived in blood and hate,
Remains our only foe!
Oh, join us, brothers, join us, sisters,
Victory is nigh!
Come meet your fate, destroy the State,
And raise black banners high!"
-- Murray N. Rothbard
(1926-1995) Dean of the Austrian School of Economics
http://quotes.liberty-tree.ca/quote_blog/Murray.Rothbard.Quote.B2EF
"Don't try to be different. Just be good. To be good is different enough."
-- Arthur Freed
[Arthur Grossman] (1894-1973) American lyricist, film producer
http://quotes.liberty-tree.ca/quote_blog/Arthur.Freed.Quote.1834
"Reason obeys itself; and ignorance does whatever is dictated to it."
-- Thomas Paine
(1737-1809) US Founding father, pamphleteer, author
Source: Rights of Man
Ho hum
Great post Aquarius....
No arms, no cake!
It's going to happen in the US JUST AS FAST!!
Get ready, the media hound dogs of CNBC are even predicting it - when is the QE program going to end is going to bring in bond rate shocks. And that is where the sheep will be sheared, enslaved, inprisoned in their cage of monetary debt.
1 Trillion in student loans magically have been just pinned to government rates (which the inside senators KNOW are about to shoot up) The students *can't* get out of their debts. And what happens when the government interest rates shoot up from 1% to 4%?
MOAR sheeple raping...
They must be trying to round up the last 14 sheep into the DOW funnel of fun! Before they without warning end QE causing 1000 point declines,
Just putting screen doors on an economic submarine.....
Muching the popcorn, enjoying the show.
Chaos? No, just all part of the banksteronian game of world domination and population reduction.
Looks as though there is a slow down in that plan. The good guys are defeating the al-cia-duh mercenary invaders in Syria. What is so sad to realize is, that in the land of the free, blah, blah, blah, we have to go to the foreign press to get real information.
http://www.intifada-palestine.com/2013/05/syrian-journalist-alaa-ebrahim...
Everyone has a right to be informed. Everyone has a right to be a free thinker. Everyone has a right to live in peace. May the growing awareness slow and stop in its tracks the corruption and war mongering so one nation under God can survive the crash. Japan has been dead since the 16th of March 2011 when fukushima had a nuclear explosion that contaminated most of the world the following weeks after. Ask scary barry. He and his family flew to South America just to kick it while the cloud went past DC. What is wacky is, all these kow-towers to the babylonian agenda are too stupid to realize they and their families are all being killed off slowly by the ever accumulating radiation also. All the while still doing the bidding the the puppet masters that are doing it to them. In Japan, is is ONLY going to get worse, barring any world-wide effort to seal the three reactors that are still melting down and getting worse day by day. Soon, chaos will take human energy in a land where they are defunct of any, and most will just lay waste to slowly die giving real credence to incredible ignorance.
It is really sad, but they say out of chaos, will come order. Yeah right. And after that, no one will be left to write the final human chapter for another 6000 years or so.
Japan is a zombie nation regardless of this financial lunacy. From its demographics to the fact that half or more of the island glows in the dark and they are taking ZERO steps to rectify the problem to the fact that every other Asian nation despises them and wants to destroy them - take your pick. In 100 years they will be a memory lost forever to the history books.
Add to that the fact that most of the Japanese mass media is actually owned and operated by "Japanese" Koreans who despise Japanese people and want to see Japan destroyed, and the situation becomes even more dire.
Very analogous to the West and its mass media.
The scary thing is that it appears that there are a lot of players running complicated conspiracies against each other and the high speed of current trading makes it even harder to get a grip on whats going on. Sooner or later the financial equivalent of the Arch Duke Ferdinand is going to get shot and the knock down will be world wide before you can yell PONZI! or FIAT!
Oh well back to getting some silver coins, mason jars, and spam.
Just 'hurry up and die'!
The Masked Bernanke is working, working, annnnnnd...There's the money shot...Oh yeah, baby.
Ok, that's a wrap. Thank you everybody. Good night.