This page has been archived and commenting is disabled.
Abe/Kuroda Double-Team Sends Japan Bonds/Stocks To May 2013 Levels
UPDATE: The Nikkei staged an impressive 155 point vertical ramp (on low volumes) back to USDJPY as soon as Abe stopped speaking running stops to late-day US session...
With Japanese stocks down 13.6% from their 12/31 highs, the big guns just hit the tape to try to save the day:
- *ABE:BOJ WILL MAKE APPROPRIATE DECISION ON EXIT STRATEGY
- *ABE: NOT EASY TO CHANGE 'DEFLATIONARY MIND'
- *KURODA: BOJ CAN CONDUCT APPROPRIATE EXIT POLICY AS NEEDED
- *KURODA: BOJ EASING HAS HAD INTENDED IMPACT SO FAR
Following Amari's earlier "markets are over-reacting" jawboning, so far this is having little to no effect. USDJPY is actually fading back lower and perhaps stunningly Japanese 20Y bond yields and stocks are back at the same levels seen in May 2013 (1 month after the BoJ unveiled QQE). Time for some Depends Mr. Abe.
Oops...
Which leaves the Nikkei -13.6% from 2013 closing highs..
Charts: Bloomberg
»
- 8354 reads
- Printer-friendly version
- Send to friend
- advertisements -
DIE PONZI DIE
Zombies don't generally respond to commands.
A 30% correction is underway for the Nikkei. It will be a bloodbath. And by April, no one will want Japanese stocks. In fact, no one will be buying except Buffet and the President's Working Group.
30% is a walk in the park. I'm hoping for a 95% - 97% pull-back. Nikkei to 120. Just look at silver, it's goddamned 20 when it should be at least 200.
With the kind of leverage that's in the system, 30% down is total ruination for lots of people.
Yup
Remember, due to social norms the average Japanese account is overweighted in Japanese corporate securities. Due to legacy cross-holdings I would not be shocked if major banks are suffering large mark to market losses this week. The question is how long can they suffer in silence before the margin calls & trade credit shortages become acute. How long will the average pension fund suffer 5% volatility before their board requires them to start to dump Nikki500 equities for safe haven assets or go to USD ?
Silver will find a higher price. This is a certainty. How much does the fiat denominated stocks need to fall? Who knows. Dollar denomination is over soon, anyway.
Shoes. Send him some shoes too! Shit's been running down his legs..
Did some body get the epi pens for Jan? Looks like depends are already part of her wardrobe, so thats covered.
If she moves now it's 115, if she waits it's 125.
Lets hope they're big girl depends!!
Deflation is amazing. You can create a bubble from time to time. But the path is always downward. Slide slide slide.
Well, it's good to know it's only a state of mind, not a terminal monetary trap that happens when you repeatedly apply monetary morphine for 20+ years instead of fixing the real problem.
Down 460 points as I type this.
They may want to just shut up and shut off the spigot. Sometimes it's just good to let the damn thing burn down.
Hang Seng is getting flame broiled too. Living in interesting times is ... interesting.
No penile medication needed today. Haven't had this much in a while.
Nikkei approaching -500 (-3.30%) making the HS -480 (-2.1%) look like merely a flesh wound.
Watched the same thing happen last year, only this time there will be no one to step in (like Abe) to save the day with bullshit.
Looks like this will lap the planet again come morning.
I love morning laps.
JPY at 101 as I type, sweet.
The USD maybe king, but DEAD are alive and kicking.
The INR (RUPEE) is skyrocketing to quote ZH, ...
That USD bitch must have tripped, or maybe the world knows something about YELLEN that we don't?
If the INR goes up 50% I might buy some BTC. :)
Banzainomics.
Hey Abe.... just build more Nuke plants along the coast.
I blame Hot Dog on a Stick filing for chapter 11 for all this global turmoil...and the cold weather
Amazing how all machinations no longer work when the real economy still sucks.
wtf is this shit, the nikkei is only down 315 now, when it was down nearly 500 just a few minutes ago.
what the fuck did that douchebag abe say to pump up the machines to buy the nikkei up again?
s&p futures up 10 pts, dow futures up 70, this shit better not be ending to the downside now bc of douchebag abe
this is a sell the rip market until further notice
Death throes sometimes look like this. Spasms and bursts of energy until they finally give out.
Wait for it.
The MSM said there will be no 'taper' under YELLEN.
The FED told ABE that the FED will send ABE all the USD he needs.
All is good, the 'sky is falling', will happen again in a few weeks, when the memory of the morons forget this show today.
Japan is us five years from now.
Asia stocks getting hammered
down 2% to start
wonder if the go- 4% by the close
Perhaps the markets understand correctly. It seems to me that those headlines could be interpreted as Abe/Kuroda cautiously hinting at a taper. This is Japan we're talking about, after all. When Abe says something like "It's not easy to change the deflationary mind," that might be the closest thing you'll ever hear to an admission of "QE isn't working. Stop the presses." It's a bit like Emperor Hirohito declaring "the war situation has developed not necessarily to Japan's advantage."
Another seesaw game of drawing liquidity to fund the problem liquidity shell game.
Gee, who didn't see this coming? I'm serious. No one of any authority said anything. Proof of the criminality of the entire global economy.
All BULLSHIT, that's why I always say "FUCK THE STOCK MARKET"
We are told its all coming apart cuz of QE 'taper'.
But even SCHIFF today (http://economiccollapsenews.com/2014/02/03/peter-schiff-yellen-will-reve...) admits that QE will go to +100 BILLION a month, there is no choice, ... as I have said all along QE to infinity free money for all, forever.
In 15 minutes ZH will post the new SCHIFF/SHIT story, and tomorrow its back to normal, as the narrative will be NO-QE-TAPER,...
It's all fucking orchestrated.
*
Most notable is that it will be QE-INFINITY forever, but the Goldman-Sachs needs to to CREATE these cycles to make trades and money. Sort of like ocean tides, rising and falling predictably.
SCHIFF is the dumbest of the DUMB, so when SCHIFF's most recent POST hits ZH, then you know they're signalling to the fool's fool, that its time for the 'stock markets' to skyrocket again...
Somebody is making money on all this predictable volatility.
oops, HFTs are killing anything trying to short futures. USD is selling, slight bids on risk. I reiterate from an earlier post, when you have a Fed official (Fisher) saying corrections are normal....
you can't QE anymore.
That's done.
Japan wants to taper now?
And this hurts the dollar how again?
What you are going to get is the spin on 'improving economy' QE worked, low rates worked etc by the idiots at the Fed and BoJ, at the same time you'll get IMF, ECB, EM players are saying deflation etc etc etc.
A confused mess all brought on by the central planners. May lead to volatility, like 2% swings neg to 1% swings positive etc. as for the USD, well it should be higher and the EUR collapsed (if the paranoia from the IMF and Germany is right i.e deflation). The money printers are losing control.
Japan is in flux and anything the country does will not help it. Changing course will not help it is headed to financial ruin and nothing can save it. Government debt plus a huge trade deficit and all its other woes are just to much to overcome. More in the post below,
http://brucewilds.blogspot.com/2013/08/japans-economy-going-forward.html
armstrong said a close below 15380 would signal a technical sell off? guess we shall see
It's at 14250 right now.
Cool Seahawks theme on the first chart. Nice!
now that japan has been defanged as a hegemonic threat for the next century of lost decades stacked upon lost decades-- is china next on america's QEinfinity dual-mandate of extermination? let's hope so!
china's markets open friday for business having alot to explain away? it looks as though china isn't as pragmatic and methodical as i gave them credit for-- greed and hubris obviously clouded their vision as it did japan in the 80's! turkey!!!, europe!!, sk!, japan, singapore, etel EMs, feed off of china's economic (consumption?) growth.
china's got a bad case of 'fang nu`... year of the horse` hemorrhoids', and that means japan is due for a permanent colostomy!
ref: "China Having Slaves Helping Property Rebound: Mortgages" 2/19/13
http://www.bloomberg.com/news/2013-02-19/china-housing-slaves-helping-property-rebound-mortgages.html
*230ml move to cities 2000-2011 --- reforms in private homeownership started in 1998 --- fang nu <house slave & multiple homeowership >
ref2. "China Can't afford to Let Its Housing Bubble Pop" 1/30/14 by William Pesek http://www.bloomberg.com/news/2014-01-30/china-can-t-afford-to-let-its-housing-bubble-pop.html
** an astounding <sic> 90% of households in a nation of ~1.3bn+/+ already own homes. in the 1st half of 2012 about 42% of demand for properties came from buyers who already owned at least one home (property)! currently, the housing market is oversupplied annually with ~15ml new housing units yearly with no sign (go slow, dangerous curve ahead/ steep grade with no bank?) of letting up? the 'fang nu' phenomenon is a large group of people (from all levels of the economic spectrum) who spend a huge portion just on a down payments, and an even larger portion of their family income paying down their monthly mortgage. sound familiar? USSA and Japan!?!
http://www.forecast-chart.com/exchange-chinese-yuan.html <cny/usd> as abe commits his nation to seppuku,... as china pushes them over the cliff, whilst falling on its own 'YIN`ning?' sword of good-riddance-intentions of self immolation subdued only by 'Rise'n`YANG`Sun'dried Acropolis?'-- as the ussa dual mandate paves our own pyrrhic <bernank> victory against the sword of damocles`a-Yellen!?!
The only honorable thing to do... commit Seppuku!
HARAKIRI & KAMIKAZE, theres always a way out for Japan.
"ABE: NOT EASY TO CHANGE 'DEFLATIONARY MIND'"
It is not about a deflationary mind, it is about deflationary mathematics.