Almost 6 months ago, I asked this question: “HOW LONG WILL THE BOJ BE ABLE TO AVOID THE COLLAPSE OF A MAJOR FINANCIAL INSTITUTION?” Surely, the central bank of Japan has done a remarkable job so far in keeping big insolvent Japanese financial institutions afloat. However, the constant flow of…
Category:Japan
SOFTBANK’S KAMIKAZE BET ON OPENAI
By now, it is an open secret that OpenAI is quickly running out of cash and is in desperate need of funding. SoftBank’s latest earnings report shows that OpenAI has few alternatives other than SoftBank paying for the second tranche of the $40 billion it committed to invest in the…
WILL SANAE TAKAICHI LAST LONGER THAN A HEAD OF LETTUCE?
The surprise victory of Sanae Takaichi as the new leader of the Japan LDP, which will allow her to become the next Prime Minister of Japan, has been welcomed by stock traders with such a loud cheer of joy that overheated Japan stocks marked one of the biggest daily jumps…
HOW COME THE HIGHER SOFTBANK’S SHARE PRICE GOES, THE BIGGER THE HOLE IN ITS BOOKS?
SoftBank just reported its financial earnings for the quarter ended on the 30th of June, and as I am writing, its shares are trading 10% higher on the day to a fresh all-time high. 3 months ago, I wrote “SOFTBANK GOES ALL IN ON AI WITH THE LITTLE MONEY IT…
HOW LONG WILL THE BOJ BE ABLE TO AVOID THE COLLAPSE OF A MAJOR FINANCIAL INSTITUTION?
It’s summer, and many traders are already enjoying their holidays and stock portfolio gains, which are growing every passing day, regardless of the circumstances. No matter that the underlying economies are falling more and more into a dark hole, a larger number of people are struggling to make ends meet,…
HOW TURKEY ENGINEERED ITS OWN ECONOMIC COLLAPSE AND WHY JAPAN AND UK ARE FOLLOWING ON THE SAME FOOTSTEPS
The Turkish Lesson Turkey’s economic collapse didn’t happen by accident—it was the result of deliberate policy choices that ignored economic fundamentals in favor of political doctrine. For years, President Erdoğan pursued a radical economic experiment that became known as “Erdoganomics”. This strategy was built on the belief that high interest…
THE PERFECT STORM IS NOW STARTING TO HIT JAPAN’S FINANCIAL SYSTEM
Imagine a whole financial system (banks, insurances, and pension funds) that for decades never second-guessed the solvency and liquidity of its own country’s government bonds because no matter what, its central bank was always ready to show a bid in case there were no takers in the market. What I…
STRAP ON FOLKS, BOND VIGILANTES ARE NOW IN THE DRIVING SEAT!
Back in August last year I wrote the article “IF THE FED CUTS RATES, THE DAMAGES WILL BE FAR GREATER THAN THE BENEFITS” to deliver the following warnings: “To all those who advocate rate cuts because those will benefit the economy, I dare to ask where exactly the economy will…
SOFTBANK GOES ALL IN ON AI WITH THE LITTLE MONEY IT HAS LEFT
As I am writing this article, SoftBank Group shares are up ~5% after the release of the latest Full Year earnings results. We know that traders nowadays only follow headlines that are carefully crafted to always deliver the most bullish narrative and hardly spend any time digging into the numbers…
NORINCHUKIN BANK IMPLOSION OFFICIALLY BEGINS
“Is it possible for a bank to continue operating while being insolvent? The answer is yes, and Norinchukin Bank is the best example of it at the moment”. This was how I started my last article on Norinchukin Bank 3 months ago. This is why yesterday I wasn’t surprised at…