When you go from “Japan’s Nikkei average closes at all-time high, breaks March record” to “Japan stocks take largest dive since Black Monday of 1987” in the span of a month, it already creates the type of roundtrip that leaves everyone pretty dizzy. The problem is the trip is far…
Category:Japan
A TRAVELER GUIDE TO NAVIGATE THE BANK OF JAPAN MESS
First of all, let’s do a quick recap of how we got here: At this point, something very important happens. On the 30th of July, right after US stocks opened for cash trading, someone very big was clearly being margin called and liquidated as I warned in this post here…
FED AND BOJ WILL DO EVERYTHING THEY CAN THIS WEEK TO SAVE THE STOCKS BUBBLE ONCE AGAIN
This week #FED and #BOJ have a lot to lose and very little to gain, a situation they put themselves into and that nobody tried to stop them from falling into. The money printer made so many people happy since the aftermath of the GFC, no motivation for anyone getting…
WHY THE BANK OF JAPAN IS DANGEROUSLY PLAYING WITH THE DERIVATIVES FIRE
On the 29th of April, something very special happened, yet many did not grasp the importance of the event. Even if that day was a public holiday in Japan, hence there was no real liquidity in the US Treasuries (both spot and related derivatives) market overnight hours as usual, the…
NOT ONLY IS NORINCHUKIN ABOUT TO LIVE THROUGH THE 2008 NIGHTMARE AGAIN, BUT MANY JAPANESE BANKS ARE IN THE SAME SITUATION
In the article “How Japan’s farmers and fishermen backed the leveraged loan boom” published more than 5 years ago, the FT tried, through the teeth, to sound the alarm on #Norinchukin Bank’s out-of-control buying spree of Collateralized Loan Obligations (CLOs). The bank was such a key player in the market…
JAPAN POST BANK IS LIKELY GOING TO BE AN EVEN BIGGER PROBLEM FOR THE BOJ THAN NORINCHUKIN BANK
Today, #Norinchukin Bank is starting to be less of an obscure name compared to more than 7 months ago when the #FED quietly added it to the list of counterparts eligible to access the standing Repo Facility the central bank established with the purpose of dealing with emergency liquidity shortfalls…
A PEEK INTO THE FUTURE: USD/JPY ROAD TO 300
Three months ago, in “Why a Historical $JPY Currency Crisis Is at the Doorstep of Japan”, we discussed the precarious state of the Japanese yen (#JPY). Considering the volume of JPY printed, the size of Japan’s economy, and its foreign reserves, the yen should have been trading at 298 against…
NORINCHUKIN BANK OFFICIALLY JOINS THE LIST OF BANK OF JAPAN’S NIGHTMARES
Late last year, the #FED quietly added a very unique institution to its Standing REPO Facility: #Norinchukin Bank. Like every other news against the MSM narrative, this event was quickly brushed away from public attention. In the article “WHY IS THE FED PREPARING TO BAIL OUT A JAPANESE BANK? BECAUSE…
TALES OF A ROARING KITTY AND A TREMBLING SOFTBANK
History never repeats, but it often rhymes. Yesterday was one of those very fascinating days in which you experience so many déjà vu moments. A few hours before #Softbank’s FY2023 results, a kitty started to roar again after more than 3 years of silence (@TheRoaringKitty), and vibes from 2021 started…
DOES SOFTBANK NEED THE WEEKEND TO NEGOTIATE ITS BAILOUT?
While global investors are busily plucking daisy petals to decide between fear and #fomo, a (very) large elephant is crying out in pain in one corner of the globe. In a surreptitious move, #Softbank quietly rescheduled the release of their Financial Results for the entire 2023 fiscal year from the…