Thursday, March 17, 2016

BOJ intervenes to WEAKEN yen. Debt crisis?

Where's the debt crisis, Kyle Bass?



7 comments:

John said...

Mike,

All you need to know is that there's going to be a crisis. SOME DAY! You have to go back to using that hilarious line! SOME DAY! IT'S GONNA HAPPEN ONE DAY!

Michael Norman said...

Right. I forgot. And the earth will stop revolving around the sun one day, too. In fact the latter is more true than the debt crisis predictions.

John said...

I hope Peter Schiff and Kyle Bass never learn about the heat death of the universe. ONE DAY! SOME DAY! IT'S GONNA HAPPEN!

If 2008 didn't prove it, here's more evidence of how big finance has started to believe its own propaganda. The propaganda that was meant solely for the plebs has somehow infected them.

Charles DuBois said...

John Mauldlin writes a weekly column which gets a very wide readership in the investment community. This week he outlined the "inevitable" supercrisis in Japan - when rates go up- they will be broke yada yada. He has personally made a big long-term bet against the Yen. I write to him and try to be helpful but, of course, I get no response.

David said...

On Jan 23rd I received a letter From the Japanese owned Union Bank offering 1% interest. Last time I got one of these letters (where offer was higher than fed funds rate) was July 2008 from Washington Mutual. I opened an account and kept under FDIC limit. Two months later....

Why does Union Bank offer expire April 22nd? Why is Japanese owned US bank short dollars?

Today I read this at Zero hedge...

"This Is An Extremely Serious Problem" - Dollar Funding Shortage Hits Record In Japan
http://www.zerohedge.com/news/2016-03-17/extremely-serious-problem-dollar-funding-shortage-hits-record-japan

which refers to

The Global Dollar Funding Shortage Is Back With A Vengeance And "This Time It's Different"
http://www.zerohedge.com/news/2015-03-08/global-dollar-funding-shortage-back-vengeance-set-surpass-lehman-crisis-levels

and mentions my neighborhood bank Mitsubishi UFJ also known as Union Bank ...

"Not everyone will be impacted equally, with Japan's largest banks - Mitsubishi UFJ, Sumitomo Mitsui and Mizuho - likely exempt from rising basis swaps and USD funding shortfalls because they can raise dollar funds by selling bonds overseas"

My guess is someone is short U.S. dollars in Japan and the BOJ just bought a bunch of dollars to help that someone out.


Michael Norman said...

Charles,

Mauldin is a clown. Give up on him.

Matt Franko said...

they were probably trying to get some USD rbs via deposits to build up USD assets in their US division to maintain regulatory ratios...

Otherwise they might have to sell JGBs to raise JPY rbs and then try to exchange them for USD rbs... which they were probably doing as the exchange rate was over 120 at the end of last year going into January.... soliciting for USD deposits in the US might have started to look like a cheaper way to do it....