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Japanese QE Scorecard: Nikkei Unchanged, Double The Bond Yields
Two months after Kuroda's first speech at the BoJ unveiling the 2-2-2-2 awesome extravaganza of excess that will enable Abe to slay his deflation-monster, we thought it worth a quick update on the score... things are not going according to plan, we suspect...
Equities are practically unchanged now; Equity implied volatility is up 60%; JGB yields have more than doubled; and the nation's currency is 6% weaker...
Keep up the good work Kuroda...
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Apparently, there is a very real cost to captial creation (printing) after all. < shocker >
We all are Fuked!
Printing money is not capital creation, it is capital reallocation.
I'd argue it takes energy to create real capital (in my book capital allows you to actually do real things). Print up some more oil bitch! I'd argue that this is massive capital and resource mis-allocation and mal-investment. It will end in social unrest and war, same as it ever was.
Abe is pushing hard for the summer elections, hoping his bullshit will help the LDP win the upper house and give him a one-party rule. The question is whether the market will cooperate. The loss of the upper house in his first term triggered his ouster. A market collapse now would likely send him running for the toilet once again.
Not according to plans is not the same as not according to expectations. I suspect they knew this was a hail-Mary play but when you're down by 6 on your own 10 and there's 5 seconds on the clock you heave and hope.
Maybe they could hire Doug Flutie to throw the ball?
Japanese prefer baseball but this is still the post of the day.
Seems they'll try anything except honest money and banking. 20+ years of banging their heads against the same brick wall... must hit harder! Stupid Nips.
Do not panic.
Do not sell.
Do not worry.
Everything is under control.
The yen is currently dropping through the support line for this devaluation fiasco. If they can't stop it really quickly I think panic is entirely justified. There's a cluster of supports above 97 but it's carnage if those fail. IMHO
I was warning everyone yesterday... This setup's been in the works for days.
http://blog.quantsig.net/2013/06/05/eurjpy-3/
"supports above 97 but it's carnage if those fail"
Well, FXY's knocking on 100 right now..., next week should tell.
Japan is screwed either way. At least with massive QE, they'll end it quicker.
Bang up job they are doing over there...but what did you expect to happen when you try to print your way out of a quadrillion Yen problem?
blow it up is the way out !!!
How else do you solve a quadrillion yen problem?
Nice fucking shell game if you ask me.