You think the stock markets are still really “markets?” Ha, ha, ha, ha, and ha.
See, everything’s cool.
It has failed. It has failed for over 2 decades now.
But I attach an interesting debate featuring Peter Boockvar (in the Abenomics is a disaster camp) and David Zervos (in the Abenomics is proof that Keynesian huja buja works camp). They are diametrically opposed and it is fun to watch.
… With the US on the same path but a bit behind.
A very well done video on the Japanese debt crisis. Anyone who cares about the world economy should have some understanding of what is going on currently in the world’s 3rd largest economy.
Kyle Bass is a smart guy and he’s been watching Japan closely and for a long time. The Hail Mary pass the Bank of Japan just tossed up has bounced in the end zone. Bass says it’s close to game over.
Print for inflation Abe said. No problem Abe said.
There is a chill moving through markets right now. The great central bank experiment of the last 5 years (the acute version) is misfiring again. As they say—you can’t get something for nothing, and the experiment which has failed the lower and middle classes of the Western world is now failing the monied classes. At least at this moment and in Japan. The markets which were feeling pretty good about themselves (for the most part, though Japan has had significant volatility recently) aren’t feeling so good.
Art Cashin the dean of the NYSE floor stopped short of saying that out and out manipulation was happening in Japanese after markets trading.
This is how tenuous the markets really are. The slightest breeze from the Federal Reserve, the mere hint that the flow of money will slow, sends one of the world’s major stock markets pinwheeling.
At this moment US market futures aren’t looking very good.
Juiced data coming out of the Ultimate Crony Capitalist State? We are shocked.
Yesterday we talked about inflationary pressures in stocks and in housing. But the core of the world economy continues to struggle. We are printing like crazy here and in Japan, and equity markets, and to a very limited extent some housing markets, have trended up. But retail sales are trending down. Gold is trending down. Silver is trending down. Europe continues to trend down. China? Well it depends on the day. Things are pretty weird right now. And North Korea is throwing a nuclear tipped fit.
Just one more hit. That will make everything better. Just…one…more…hit……….
Not only is the Bank of Japan going to buy huge amounts of government bonds, but it’s also going to buy stocks, ETFs, and real estate investment trusts.
Printing money and broad fiscal stimulus isn’t going to work because of deep structural issues within the Japanese economy. Specifically the country’s population keeps getting older while the economy is also becoming more and more integrated with China’s. Deflationary winds are gale force and steady.
Are the Japanese as irrational as they seem?