Nikkei closes at highest mark in nearly 5 years

So, should we commend or condemn Abenomics?

Any credit balance left or spent all $1.3tri that was to be spent in two years time (?) Local matsuri nothing to commend or condemn.

What goes up must come down...

They, they need to bring back the zaurus PDA.

As mentioned here, aggressive easing by the BOJ, among other factors, is causing the Nikkei to rise through positive sentiment toward a weakening yen (and thus more exports).

In addition, I would guess that because the BOJ through this aggressive easing is now set to purchase around 70% of all new Japanese Government Bonds issued every month, institutional investors who previously parked money in JGBs now are channeling more of those funds in equities. This freshly-printed money, then, is fueling a stock market bubble.

Given that this BOJ bond buying is apt to be quite prolonged, the Nikkei bubble could grow for some time before a reversal sets in. At any rate, it will be interesting to see how this unprecedented BOJ "qualitative and quantitative" easing pans out in the end.

The rich get richer, the poor get poorer. Wait until the price rises and tax rises kick in. Does the ordinary man/woman care about the stock market?? Of course not. They care about their job disappearing and stagnant or falling wages whilst everything goes up in price. Still being Japan, they will just gaman and shoganai so Abe can do whatever he likes without any repercussions.

It is just a tease to spawn hope. It's like living on credit and thinking you can continue indefinitely. One little glitch and your done. I can speak from experience I assure you!

I hope Nikkei crashes before Abe's right wing agenda is passed into law.

Umbrella, Abe can not do whatever he likes. His destiny is tied to Abenomics. If Abenomics fails, then Abe fails as well.

People are not out buying stock because they suddenly believe in the increased profitability of Japanese companies. They're buying stock out of fear, to shield themselves from the catastrophic inflation (probably not "hyper"-inflation) that is sure to come when the money supply has been increased so suddenly.

The average Taro and Hanako don't pay much attention to exchange rates, so as far as their concerned, the huge decline, engineered by Abe, in the value of their savings on the international markets (a Y10,000,000 nest egg would have bought $130,000 just half a year ago; only $100k now) isn't something they're paying attention to, because domestic prices haven't changed yet.

But they will -- massive increases in the costs of electricity are already scheduled; gas prices are also pushing upward. Basically anything purchased on the international market will go up, because the value of the yen, internationally, has plummeted like a stone.

Abe knows that he has a window of opportunity right now -- after the stock investors have picked up some profit, but before higher consumer prices catch up and he starts taking flak -- to get his policies passed. While I hate to root for a market crash, I have to agree with Amida: the sooner, the better, for a correction in the Nikkei. Unless you're in the export business, or have all your savings in things other than yen-denominated cash and bonds, Abenomics is bleeding you dry.

This is a bubble. There's nothing fundamental to push stock prices upward except fear that cash will lose its value. And when the bubble pops, like all bubbles in history have popped, who will be left holding the bag? The rich, the connected, the politically powerful... or the public?

Does the ordinary man/woman care about the stock market??

They should. The biggest players are institutional investors, and many of these are pension and other types of social-security funds, or life insurance. These serve the role of securing funds for the future, so that people can continue to receive care and security into their old age.

They're buying stock out of fear, to shield themselves from the catastrophic inflation

The "catastrophic inflation" fear-mongering is getting really old. These warnings have existed for 13 years or so. ever since QE started. Just one tiny problem: the predictions have been consistently wrong. In fact we've gotten deflation instead. How more wrong can someone be?

People are not out buying stock because they suddenly believe in the increased profitability of Japanese companies. They're buying stock out of fear, to shield themselves from the catastrophic inflation (probably not "hyper"-inflation) that is sure to come when the money supply has been increased so suddenly.

Quote of the year. People buying stocks out of fear. The detractors seem to come up with most ridiculus arguments these days.

Long term, seemingly insurmountable debt for little gain? These are the same LDP policies of the 90's that created the lost decade.

Huge spending is not the answer. Targeted, specific and liberlising economic reforms are needed to give Japan a flexible economy.

Is Japan producing more? Is demand rising for Japanese manufactured goods? Are the massive debt levels around the world being forgiven by the bankers?

No!

Are we seeing food,gasoline and other staples rising? Yes! Creating money from nothing is a bag of hot air-it will come crashing down! Look for a major crash at the end of this month........