Japanic Monday: Japanese Bonds, Stocks Halted After Plunging Into Bear Market As Everything Crashes Everywhere

[seminole97]

...by deciding to hike rates into an economic slowdown, the BOJ - which as we noted last week "changed the rules" again - has unleashed a financial apocalypse by creating a positive feedback loop that culminates with a deflationary collapse of all assets (as the bank now goalseeks a surge in the yen and thus deflation and economic devastation) which has led to not only to the Nikkei promptly entering a bear market from its all time high hit just 3 weeks ago and wiping out all of its year to day gains, not to mention collapsing 15% since last week's BOJ meeting which we knew would be a disaster...



... which has also just suffered its biggest two-day drop in history, surpassing Black Monday...



... but also the halt of trading of both its peer, the Topix...

• *CIRCUIT BREAKER TRIGGERED FOR TOPIX INDEX

... as it too enters a bear market...

• *JAPAN'S TOPIX INDEX FALLS 20% FROM JULY PEAK

... and the entire Japanese bond market:

• *CIRCUIT BREAKER TRIGGERED FOR JAPAN GOVT BOND FUTURES

Meanwhile, among today's freefalling stocks are such names as the iconic Nintendo...

• *NASDAQ 100 FUTURES DROP AS MUCH AS 2%

...and perhaps something more troubling, is that Japan's megabanks are in freefall, starting with Mizuho...

• *MIZUHO SHARES FALL AS MUCH AS 12%, MOST SINCE MARCH 2020

and ending with Japan's largest bank, its JPMorgan, if you will, which just plunged the most on record!

• *MUFG SHARES FALL AS MUCH AS 21%, RECORD INTRADAY DECLINE

It's not just Japan: Korea is getting swept in as well...

• *KOSPI INDEX SLUMPS, TAKING LOSSES FROM JULY PEAK TO 10%

... and of course, the US, where Nasdaq futures crashing as much as 2% and the S&P is down 1.1%

• *NASDAQ 100 FUTURES DROP AS MUCH AS 2%

And then there's bitcoin which, well, lets not even go there.

So strap in folks, the day is just getting started...

 

[NorthernHawkeye]

Buckle up...

 

[hawkland14]

Yikes. Tomorrow is going to be an interesting day.

 

[TJ8869]

This is Getting Out of Hand.

 

[Menace Sockeyes]

Cool story, bros.

 

[RollingBallofButcherKnives]

Going to need sound financial advice from Rico to weather this storm…

 

[LBoogie28]

Just sold off all my sushi futures.

 

[50kWidowmaker]

Cool story, bros.

This thread is for people who own stocks.

 

[Menace Sockeyes]

This thread is for people hoping for a stock market crash for political reasons.

FIFY

 

[NorthernHawkeye]

FIFY

You really think people would prefer a huge chunk of their assets disappear so long as their preferred candidate wins?

 

[HawkeyeHitman]

Cool story, bros.

You’re going to be shitting yourself when your government check dries up. It’s useless people like you who will cause the dollar to collapse.

 

[HawkeyeHitman]

You really think people would prefer a huge chunk of their assets disappear so long as their preferred candidate wins?

He doesn’t know what an asset is because he’s a useless leech.

 

[thewop]

You really think people would prefer a huge chunk of their assets disappear so long as their preferred candidate wins?

To people who live hand to mouth, none of that matters.

The waitress I met who "had a good night" and decided to buy her kid a $300 baseball bat for example... There are many people out there who live cash in cash out, and they don't care about any of this. These people are ideal targets for Dems, and make great dependents for the big government ruling class.

 

[dgordo]

More central bankers that want a recession.

 

[EvilMonkeyInTheCloset]

I love it. God won't allow me to make money off of gambling (yes this is a real thing), and then when I finally have some spare cash to get into the stock market, it's about to collapse again.

The best part is we'll get to find out just how petty we can go here, just to keep me from making money the "easy way", as the stock market affects millions......not just one person.

This is gonna be fun!

 

[Menace Sockeyes]

Bitcoin crash is exciting. The absolute worst people on Earth are going to get their assets handed to them. Getting my popcorn ready!

 

[seminole97]

More central bankers that want a recession.

Not really. If they did they'd just allow market rates for a few months.

In Wednesday's move, the Bank of Japan raised its benchmark interest rate to 0.25%, further unwinding the monetary-stimulus policy it has pursued for most of the past quarter-century. The benchmark rate was previously set in a range between 0% and 0.1%.

 

[mnole03]

With the way futures are looking, we’ll barely be up 11% YTD after tomorrow.

 

[seminole97]

Nov 14 2023

Japan's $20 trn 'carry trade' poses risks amid central bank's policy shift​

Japan's government is engaged in a massive $20 trillion "carry trade" - the funding of loans and foreign assets by borrowing low-cost yen - that could bring unexpected risks if the central bank tightens policy, Deutsche Bank analysts warn.

Using research by the San Francisco Federal Reserve and International Monetary Fund, Deutsche's head of currency research George Saravelos analysed a consolidated balance sheet of the Japanese government including the government-run pension fund GPIF, the Bank of Japan (BOJ), and state-owned banks, showing the asset-liability mix of its $20 trillion debt.

That debt, Deutsche Bank found, amounts to an enormous "trade" invested abroad at high interest rates and funded by low-rate, short-term borrowing in yen.

As expectations grow for the Bank of Japan to exit its ultra-loose monetary stance, Deutsche Bank's report says it is crucial to understand the potential consequences of this huge trade, not only on the government's balance sheet but on savings and assets held by households.

The yen has traditionally been a favourite funding currency for carry trades because of Japan's low interest rates, and market participants expect investors globally to unwind hundreds of billions of dollars of such trades if and when the BOJ exits its ultra-easy monetary policy.

Deutsche Bank's report extends that scenario to include the Japanese government and its balance sheet.

With real rates kept low via the central bank's negative rates policy, the government has found fiscal space, enabling it to run public debt above 200% of GDP while financing one-third in overnight cash, the report said.

Deutsche also said it was no surprise the heavy selloff in bonds this year had not hurt Japan.

"Everyone else has stopped out of carry trades, why hasn't Japan? The answer is simple: On the liability side the BOJ controls the government's cost of funding and this has been kept at zero (or indeed negative) despite rising inflation," it said.

Sustained inflation, however, could bring an end to this enormous carry trade, with pressure already mounting on the BOJ to normalise its monetary policy.

"If the central bank raises rates the government will have to start paying money to all the banks and the carry trade's profitability will quickly start unwinding," Deutsche analysts said.

That would mean higher interest payments on bank reserves and a fall in government bond values, as well as a decline in the government's asset values in a higher interest rate environment.

The analysts also expect that an appreciation of the yen as domestic interest rates rise could potentially trigger a drop in the value of both foreign and domestic assets.

 

[SalAunese]

To people who live hand to mouth, none of that matters.

The waitress I met who "had a good night" and decided to buy her kid a $300 baseball bat for example... There are many people out there who live cash in cash out, and they don't care about any of this. These people are ideal targets for Dems, and make great dependents for the big government ruling class.

Those are actually the Trump voters. The vast majority of educated voters with good portfolios aren’t GOP anymore unless you’re one of the Koch Bros or Elon Musk

 

[Bloody Run Hawk]

I love it. God won't allow me to make money off of gambling (yes this is a real thing), and then when I finally have some spare cash to get into the stock market, it's about to collapse again.

The best part is we'll get to find out just how petty we can go here, just to keep me from making money the "easy way", as the stock market affects millions......not just one person.

This is gonna be fun!

When the market crashes it's a good time to invest. No worries.

 

[SA_Hawk]

Bitcoin crash is exciting. The absolute worst people on Earth are going to get their assets handed to them. Getting my popcorn ready!

U.S. Federal Government holds about 15 billion in Bitcoin reserves.

 

[seminole97]

U.S. Federal Government holds about 15 billion in Bitcoin reserves.

US gov’t among states with largest Bitcoin holdings — Arkham​

According to Arkham, the U.S. government holds 212,847 BTC, while the treasuries of the U.K. and Germany hold 61,245 BTC and 49,858 BTC, respectively.

 

[arrrrrghhhh!]

US gov’t among states with largest Bitcoin holdings — Arkham​

According to Arkham, the U.S. government holds 212,847 BTC, while the treasuries of the U.K. and Germany hold 61,245 BTC and 49,858 BTC, respectively.

Are those the absolute worst people on earth I read about earlier in this thread?

 

[Menace Sockeyes]

U.S. Federal Government holds about 15 billion in Bitcoin reserves.

US gov’t among states with largest Bitcoin holdings — Arkham​

According to Arkham, the U.S. government holds 212,847 BTC, while the treasuries of the U.K. and Germany hold 61,245 BTC and 49,858 BTC, respectively.

Incredibly stupid. What are we, El Salvador? Speaking of, this should be interesting for them.

 

[Menace Sockeyes]

Are those the absolute worst people on earth I read about earlier in this thread?

I meant crypto bros. We need more of them jumping out of windows.

 

[HawkeyeHitman]

I meant crypto bros. We need more of them jumping out of windows.

We need more leeches like yourself jumping out of windows.

 

[seminole97]

Incredibly stupid.

With the U.S. government already running a two trillion dollar deficit FYTD, it's the best asset Uncle Sam has.

 

[tumorboy]

You really think people would prefer a huge chunk of their assets disappear so long as their preferred candidate wins?

If you’re close to retirement and didn’t have the majority of your portfolio in a fixed return position it’s going to suck.
If you’re 10 plus years away you’ll be fine.

 

[tumorboy]

US gov’t among states with largest Bitcoin holdings — Arkham​

According to Arkham, the U.S. government holds 212,847 BTC, while the treasuries of the U.K. and Germany hold 61,245 BTC and 49,858 BTC, respectively.

So this guy is managing things

 

[Menace Sockeyes]

We need more leeches like yourself jumping out of windows.

Unlike crypto bros and stock traders, I actually contribute to the world and live a life of meaning. Sorry about your Bitcoin losses! 😂

 

[tumorboy]

You really think people would prefer a huge chunk of their assets disappear so long as their preferred candidate wins?

Better question to ask do you think Kamala or Trump being in charge would be different from an economic prospective. In tackling the coming recession. Both appear to only want to spend , spend, spend. Yes and tax cuts funded by deficit spending isn’t different than any other spending proposal.

 

[Formerly Rockymtnole]

To people who live hand to mouth, none of that matters.

The waitress I met who "had a good night" and decided to buy her kid a $300 baseball bat for example... There are many people out there who live cash in cash out, and they don't care about any of this. These people are ideal targets for Dems, and make great dependents for the big government ruling class.

Get outta here.

You just described half the MAGA base.

 

[SA_Hawk]

I meant crypto bros. We need more of them jumping out of windows.

Are you made you didn’t get into crypto earlier or that you don’t understand it?

 

[SA_Hawk]

Benjamin Graham’s dictum remains unimprovable – in the short term, markets are voting machines (sentiment, mood, etc.), but in the long term, they are weighing machines (and what they weigh, is profits).

 

[SA_Hawk]

“Buy when the cannons are thundering and sell when the violins are playing.”
~N. M. Rothschild​

 

[dgordo]

Not really. If they did they'd just allow market rates for a few months.

In Wednesday's move, the Bank of Japan raised its benchmark interest rate to 0.25%, further unwinding the monetary-stimulus policy it has pursued for most of the past quarter-century. The benchmark rate was previously set in a range between 0% and 0.1%.

GDP shrank in q1. Raising rates into a shrinking economy is dumb.

 

[Whiskeydeltadeltatango]

U.S. Federal Government holds about 15 billion in Bitcoin reserves.

You said something about bitcoin going to Russia foe prisoners. That's looks super interesting now, if true. I've seen nothing to verify that. Any source?

 

[InsaneHawkJJP]

 

[HawkeyeHitman]

Unlike crypto bros and stock traders, I actually contribute to the world and live a life of meaning. Sorry about your Bitcoin losses! 😂

Attending Pro Palestinian protests is not contributing to the world.