Yen Flash Crashes... Again

Tyler Durden's picture

Timber time. Next up: another round of hopeless and very much helpless BOJ intervention. Because after the FX wars come the trade wars, and after the trade wars come the shooting wars.


All currencies:

Charts: Bloomberg

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Clorox Cowboy's picture

Ok, that was actually my fault...why doesn't CRTL+Z seem to be working today in E-Trade?

Fukushima Sam's picture

Japan is royally fucked.  They bet their environment on nuclear energy and lost.  That's a big problem on an island.  They Yen really has nowhere to go but down.

Ahmeexnal's picture

DXY at multimonth high.
Just as expected. The USD's last rally.

Highrev's picture

Johnny-san Fat Finger. (or Fat Finger-san as I've coined before)


At least we know where the real trouble is. (or part of it anyway)

The Alarmist's picture

Except that in this case "down" means it is getting stronger.

Cdad's picture

Good!  The US needs a trade war with China NOW!  

Bastiat009's picture

I am going to disagree with you. The last thing the US needs is yet another war. What the US needs is to start producing stuff ... I don't know what kind of stuff because if I did I would invest my work, time and money in the manufacturing of that product. 

Chinese are willing to work for peanuts because peanuts is better than nothing. The US, like the rest of the Western world, has failed to acknowledge that other countries and people could do very well too.

One of the things the US government could do is offer a green card to all the foreigners who graduate college (or complete a PhD ...) instead of having a green card lottery that an Ukrainian truck driver can win. Seriously, what the economy needs is more entrepreneurs, not more truck drivers. (I have nothing against Ukrainian truck drivers, it was just an example).

A.W.E.S.O.M.-O 4000's picture

You just pissed off all of my brothers in the "Rainbow Trucker Brigade" my friend.

Cdad's picture


Exactly......exactly why the trade war needs to go forward.  

A.  I am an American SICK TO DEATH of watching jobs go to China

B.  Poorly made and cheap Chinese goods encourage mindless materialism [and requires high replacement rates]

C.  The Chinese currency manipulation has cost this nation untold dollars.


50% tariffs on all imported Chinese goods.....NOW!  Bring it!

Blankman's picture

"What the US needs is to start producing stuff ... I don't know what kind of stuff because if I did I would invest my work, time and money in the manufacturing of that product."


It has already been done that is the problem - booze and porn.  What else do you really need?

exiledbear's picture

The Chinese elite are willing to be the lowest cost bidder on everything because if they don't have something approaching full unemployment, the whole country goes into anarchy.

And if there's one thing they fear more than anything else, it's anarchy. It's sorta the way Republicans view gay sex. Well ok, maybe not.

Kuri's picture

Please, China : do me a favour. Get rid of all your USD cash reserves now. And don't forget the US treasuries. Y'know ? Useless paper...

HITMAN56's picture

I hear if I was going to be in Tokyo exchanging my USD for would be a good time or no?

TruthInSunshine's picture

The BOJ will finally master the art of Yen devaluation after all manufacturing is offshored from Japanese soil, in which case, it will be not only pointless, but incredibly destructive.

Yes, you can now order your hecho en Mexico Toyota Yaris (formerly made in Japan) and hecho en Mexico Honda Fit (formerly made in Japan), as well as many, many other made in the U.S., Poland, Mexico and Brazil autos that had been formerly made in Japan.

vast-dom's picture

Irradiated manufacturing is bullish.

Oh regional Indian's picture

I was just going to say, exactly. Probably better off buying Hencho en Mexico today.

I wonder what would happen if I walked into a Toyota/Honda dealership with a radiation detector here in India....hahhh, probably be arrested for disturbing the peace as it goes off the charts.


yucks in America!

Hephasteus's picture

0.07 seconds. That split second of time is so minuscule that the human brain scarcely could register it, yet the power going out at a Toshiba manufacturing plant might be all that it takes to sink the world’s flash memory supply by 20% for the next year… and send the price of your next smartphone or tablet skyrocketing.

agNau's picture

Dollar safety push is on.

Segestan's picture

Rearm Japan... take out the Chicoms.

Zeilschip's picture

Rearm? We were in war with them last time they had arms you know this right dimwit?

Irish66's picture

keep a close on the swisseee

GeneMarchbanks's picture

Dear Yen,

Please stop.

Your friend, Euro

Seize Mars's picture

Well, the Dollar crashed, in Yen terms. Right?

Atomizer's picture

That algorithm is going to have to take a 10 minute timeout. Your a bad bad algorithm.

fuu's picture

But where will the liquidity come from?

Won't someone think of the liquidity?

Comay Mierda's picture

"I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones." - some guy

monopoly's picture

Starting to get a little scary now. Thank goodness we have Nancy and Harry to make it better.  :)

toady's picture

Dow 10k?

S&P 1k?

No euro close bounce today!

Bastiat009's picture

Turn the charts upside down and you'll see a bounce toward the euro close.

Quintus's picture

Taking into account only the frequency and severity of interventions in all markets (Seems to be a daily occurrence now) we MUST be in the very last days of the system.


Bam_Man's picture

As Jesse very aptly put it, in this environment "It is almost a curse to know anything these days".

Conax's picture

 "In much wisdom is much grief: and he that increaseth knowledge increaseth sorrow."  Ecclesiastes 1:18

It was always thus.

oogs66's picture

its just a fast crash, not a flash crash...those come back :)

Zero Govt's picture

"...and after the trade wars come the shooting wars"


Yes but can 3 illegal wars America afford any more bullets?

Can Benny print anymore bucks and buy yet more US Govt Timmay Turds??

Will any military contractor take them as payment???

...tune into the next exciting episode of 'Benny and Timmay Get Analised XII' 

Piranhanoia's picture

Seems more likely we will be a target than an instigator,  at least on tv.

A.W.E.S.O.M.-O 4000's picture

Dude, 3 illegal wars? I thought were up to 7?

Muddy1's picture

Hell, let's start selling War Bonds.

Bam_Man's picture

Yen carry trades unwinding.

This is what the Swiss have to look forward to a couple of years from now.

Salty Dawg's picture

Dow drops 70 plus points as Obama speaks. as usual.

laomei's picture

Gold's gonna reach parity with the dow one way or another....

P the P's picture

All looks so impressive BUT it's been 76.50/78.00 for a month and that's not making anyone rich

riskarb's picture

50 pips now qualifies as a flash crash?

anarkst's picture

"Because after the FX wars come the trade wars, and after the trade wars come the shooting wars."


And this is one of the great lessons of history.  Greed kills!

Paper CRUSHer's picture



Things are turnin' pretty fugly on the last trading day of the week so i suggest we open the cocktail cabinet and make a refeshing drink to cool off.I recommend my ol' personal favourite recipe called the Grand Slam:

1qt 100%proof bourbon

1/2 qt scotch

3cl cognaic with orange peel

1/4qt clorox

1 teaspoon of castor oil

1 cap. ex.strong mouthwash

garnish with lemon and crushed blackpepper corns

{Best served shaken not spilled}.