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Plunge Protection Exposed: Bank Of Japan Stepped In A Stunning 143 Times To Buy Stocks, Prevent Drop
Since 2010, The Bank of Japan has 'openly' - no conspiracy theory here - been a buyer of Japanese stock ETFs. Their bravado increased as the years passed and Abe pressured them from their independence to 'show' that his policies were working to the point that in September 2014, The BoJ bought a record amount of Japanese stock ETFs taking its holdings to over 1.5% of the entire market cap, surpassing Nippon Life as the largest individual holder of Japanese stocks. However, as WSJ reports, The BoJ has now gone full intervention-tard - buying Japanese stocks on 76% of the days when the market opened lower.
As The Wall Street Journal reports,
The Bank of Japan’s aggressive purchasing of stock funds has helped Japanese shares climb to multiyear highs in recent months. But some within the central bank are growing uncomfortable about the fast-paced rally and the bank’s own role in fueling it.
Since Gov. Haruhiko Kuroda took office in March 2013 and introduced monetary easing of what he called a “different dimension,” the central bank has sharply increased its buying of baskets of stocks known as exchange-traded funds. By directly underpinning the market, officials have tried to encourage private investors to follow suit and put more money in stocks in the hope of stimulating the economy and increasing inflation.
During the past two years, the central bank entered the stock market roughly once every three days, picking up a total of ¥2.8 trillion ($23 billion) of ETFs that track Japan’s major stock indexes, according to Bank of Japan records. That distinguishes it from the U.S. Federal Reserve and European Central Bank, both of which have bought bonds to pump up the economy but haven’t directly bought stocks.
Analysts say the bank’s action has been a significant driver of Japan’s stock-market rally in recent months, combined with hefty purchases by the $1.1 trillion Government Pension Investment Fund. Their buying has often countered selling pressure from individuals in the market and made up for a weaker appetite among foreign investors.
The central bank has stepped in mostly when market sentiment was weak. Three-quarters of the central bank’s buying occurred on days when the benchmark Topix index opened lower, according to a Wall Street Journal analysis of BOJ data.
So much for independence...
BOJ officials used to be cautious about purchasing ETFs, worried that it could distort market activities and put the central bank’s own financial health at risk. But under pressure from politicians following the global financial crisis, the bank changed its stance in late 2010.
“We led the cows to water, but they didn’t drink it, even though we told them it tasted good,” Miyako Suda, who was a board member then, wrote in a 2014 book discussing monetary easing at that time. “So we thought we should drink it ourselves, showing them it was tasty.”
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What a joke!!
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QE 2
Titanic.
Sure goosed that economy, right?
This trickle down is more of the diarrhea type.
Wow, Japan is F.U.C.K.E.D. Snake eating his tail now.
pods
There are no markets left, just market interventions...
In a similar way, the DAX is up 300 points today and 200 above the last all time high... Whoever is buying must be pretty damn sure that prices are going to be higher still, some point in the future, in order to make a profit??
Or is there another reason for investing that I'm not privvy to?
believe it's called 'behavioral economics'. As in: "If we rig it, they will comply."
"Cluster Of Central Banks" Have Secretly Invested $29 Trillion In The Market
That's the beauty of printing your own money - you can spend as much of it as you want on anything.
Perfect description to the Modern American Miracle! The Fed prints to infinity for the us of Washington DC. Thus American can spend more on their military, spies, State Department NGOs etc. etc., than all the rest of the world combined. The USA can spend without consequence while the rest of the world struggels to earn foreign exchange to fund their imports, the USA simply prints and imports all the nation needs.
kinda funny...when i translated this article from english to japanese it says federal reserve and mr. yellen...
You can let bonds mature and roll off your balance sheet over time. What's the unwind plan for this part of their portfolio?
And who, exactly, votes all of those millions of shares in matters of corporate governance?
"This distinguishes the BOJ from the ECB and the federal reserve, which have bought bonds but haven't purchased stocks"...
Riigghhtttt.......
SOCIALISM
when the government owns everything. but here is the good news. the people of japan now own EVERYTHING! yes! you see, they are the ones paying for it under the guise of central bank buying sprees. those funny little central bankers... always thinking of the little guys. wow and to think that for a second, those japs were going broke with that demographic cliff and all. congratz mr and ms miagi. we do truely envy you.
It think you are confusing the word "own" with the phrase "paying for". The bank owns all, or soon will. Governments and corporations will be used to excercise control and continued wealth harvesting. Assuming they don't "accidentally" kill us all in some genetic experiment first.
Um yeah, it's called the Euro falling apart and they are all hoping for Deutsche Marks when TSHTF........this is not rigging, it's money looking for a safe place to go in europe.
As someone once said, Japan is a fly in search of a windshield.
That was Mauldin.
I'm more interested in their net position, and how many times they sold.
Coming soon to the U.S. Federal Reserve near you. I always laugh how so many Dems excoriate "trickle down economics" (fiscal policy), but fully embrace the trickle down monetary policy of QE and ZIRP.
Trickle down or trickled on... at this point, it's all the same.
Trickle down or trickled on... at this point, it's all the same.
Every other day outside of holidays.
People ask the question, "It's no big deal because we owe the money to ourselves, right?"
Wrong. We owe the money to the bank. The bank is creating/buying our government debt that we will have to pay for. The bank is creating more government debt to buy up the stock market, debt we will have to repay to... the bank.
Let me put this another way. They are buying the rope from us, by which they mean to hang us. Once we are all hanged we will still be on the hook to pay for the rope we sold them to hang us. They are gonna own everything. That is why corporations can be people and buy up government. The bank has already owns the government and just how long will it be until they own all the corporations too? Corporations think they are getting real influence but anyone can see that the corporations that are most useful as a means of control and punishment are the real successes because this is how the bank wants it. All the while corporations are going into debt to the bank and the bank is using corporate taxes to fund the bank's stock buying. Once enough leverage is had then collapse can be induced and the reality that the bank owns everything can be revealed. Where governments can be used to enforce this fact, they will. Where corporations can be used to enforce this fact, they will. With near absolute media and communications control as well as extreme market manipulation the bank could, in theory, carry out a near global coup and power transition without many people even being aware of it. At first.
Three months later when people are starving to death all over the globe, maybe not so much.
Anyway, I don't mean to say the bank is solely to blame. The government, politicians and worker bees sold us out long ago. Hell, we keep on electing them and paying them and protecting them. Maybe in two thousand years there will be a book written by a man whose name rhymes with ribbon called "The Decline and Fall of the WORLD". Hmm, probably won't be enough survivors to warrant the effort to remember.
Well, have a nice day.
assuming your cows are thirsty to begin with...
When will this madness end, and why aren't these people in jail?
They print the money to buy, staff, and manage the jails. In printing money, they also create opportunities to impoverish prospective jailees - sort of a perk to being an asocial, amoral, pathological peddler in paper promises.
Back to Basics its ending, one minute at a time. War rhetoric is being ratcheted up, and you have desperation such as Greece wanting to confiscate German assets, it means it has begun. Enjoy the ride, and good luck to us all.
Power is given to the Beast to overcome the Saints....
when will the Fed admit it does the same thing?
Funny coincidence...the "foreign held" US Treasury's are at a record high (nearly 3x's as large as the Fed holdings) but nearly all the recent buying is done by five nations (Belgium, Cayman Islands, Ireland, Luxembourg & Japan)...none of which has a dollar trade surplus...ie, no dollars with which to buy. These five nations Treasury purchases are well in excess of the Fed's since July 2011...interesting.
Consider who is buying all the US Treasury's without Fed's QE or Trust Fund surplus...seems unlikely domestic buyers will step up but for some strange reason, the "foreign held" never seems to hold enough Treasury's...despite the declining need for dollar reserves globally...
http://econimica.blogspot.com/2015/03/treasury-buying-pyramid-ponzi-or-gdp.html
Funnier still...as of next months TIC report...Japan will almost surely be America's #1 creditor again, surpassing China, who (funny) hasn't bought a single net Treasury since July 2011 while running record trade surplus of over $1 trillion in that time. And funny knee slapper, what China has bought since July 2011...gold...lol.
The FED/PPT is doing the exact same thing.
The audit would clearly show...wait a minute.
In 2008 the FED said...
“an audit would run the risk of undermining market confidence in the Fed"
either that or they would all be hopping on their learjets for political asylum in Tel Aviv.
They'll need to go to that Mars mission for asylum...
uranus. POW PING BOOM YEAH!
I suspect the Fed also does it indirectly through proxy funds with free money loans from member banks. Just a guess.
Dat's cynical Bastiat but your probably 100+ 3/the number of official gubberment secret memos sent by Billary Clampitt from her private email a/c % correct.
Yes, I think they're more sophisticated Ponzi artists then this display from the BoJ.
So while the BOJ was going long Nikkei, were they also somehow going short gold at the same time (as per Paul Mylchreest's analysis)? Particularly since last October?
Yes. Explained in great detail.
http://www.zerohedge.com/news/2014-12-04/inside-look-shocking-role-gold-...
Fraud.
That is what keeps economies afloat now.
How often does the Fed buy stock futures and shorts gold?
Yes. This part is absolute baloney:
"That distinguishes it from the U.S. Federal Reserve and European Central Bank, both of which have bought bonds to pump up the economy but haven’t directly bought stocks."
It's laughable to think the Fed isn't propping up the stock market. Just because they aren't doing so directly, and are having intermediaries do the actual buying, doesn't mean they aren't doing it.
The real question is who do they think has any money to hold the bag? The bulls are already fully invested, and the bears are busted after 5 years of shorting. This is a runaway toboggan and they can't get off.
Just like when Hillary said she didn't delete any emails. It was true, she didn't. Someone else certainly did though.
Just like when Hillary said she didn't delete any emails. It was true, she didn't. Someone else certainly did though.
When you own most of the stocks you become the economy....
The centrally planned economy...the USSA...
Free Honda and tank of gas if you buy a Spider-Man towel
who will buy when they decide to shell?
Government pension funds, Japan Post Bank, savers all over Japan.
As late as 2009, Japanese savers held $15 trillion (probably less now). The government considers these savings as a government asset.
The government does not consider the possibility of collapse until the total debt exceeds that amount.
Over 2/3 the way there.
All private corporations wil go bankrupt, and become property of the state - which will then collapse, and become the property of an ultra-national trust - owned by Rothschild.
Stock bulkkake
There is nothing worth adding to on the planet right now, except physical PMs. Even those look like shit on the charts. But, the entire stock and bond markets are going to look like the gold mining stock sector before this is all over. At least PMs are already the cheapest they have ever been vs debt and the money supply.
Is it just me..or is all the news now about Central Banks.....that is the new economy...
BOJ is boring, what about Da Fed?
fucking morons...
not a big fan of the japanese...
just sayin...
The whole thing is a fuckin' joke now globally. But it always was to some extent with the institutional money always propping up the market anyway.
Audit the Fed.
Exactly. Cthonic,
There's rats in the garbage. Time to bring out the pellet pistol.
Fate the Magnificent
"Push the Button, Max"
It could never happen here.
Except when it does...
Why are there no blow ups being mentioned related to the recent move in the Euro against the US$?????
Thanks to the little glowing yellow men in Japan.
So where do I sign my company up for plunge protection?
What's this MARKET you're referring to? Markets actually have real price discovery.
No Fraud here,,,, move on...
Oh, Please remember to BTFD
KamikazEEEEEEEEE
I just want to know where the liquidity ends in both China and Japan, since neither has petrodollars (domestic) to float their banks.
Purchase of government bonds, trade surplus....what else? There's over 500 billionaires in China. And they have ALL of this money to keep buying up US Treasurys.
The Japanese have a problem with shame, which is why they'll do this thing over and over and before admitting it's not working they nuke the world and themselves to eschew shame thereby committing Seppuku.
Japan is the dangerous nuke, not Iran.
23 billion , no , this is a huge ass lie.
that is chump change and no fucking central bank is going to 'invest' 23 billion in stocks to manipulate ANYTHING.
more like hundreds of billions or trillions.
more and more lies.
No surprise. Japan is JewSA bitch. Otherwise the Japanese bank heads and leaders would get suicided.
well it is offical....companies buy their own stock while revenue drops instead of investing....and now government's buy stocks in companies who revenues drop.... Ya in all of history there has never been a more fraudlent ponzi scheme!!!
The single most amazing thing about this asset purchase plan is that the BoJ publishes it. I respect them. They're going down the drain first - but all of the fiat currencies are going there. I expect the Japanese will do well on the other side; they've retained some integrity.
Better the central banks at least buy something of value, rather than just T-bonds that are flipped to them by the usual suspects. At least buying stock indices supports industrial growth of industries that are ostensibly judged as being useful. Unlike buying T-bonds which only supports the growth of government.
bubble bubble toil and trouble! More Central bank Witch Craft
Wow they burned a lot of shorts.
The Fed wants to own it all, and is putting it's printing press where it's mouth is. Hell, if I owned the printing press I would buy it all myself, easy as pie
america's SAVIOR. Yeah that's right T. Swift, legalized gambling / should be more the content of rounders than House of Cards...
I've filed Suda's comments in the "You Can't Make This Shit Up - Japan" folder.
Hookers and blow looking more and more like the safe play.