Stock shocks

BOJ has been using pension money to directly buy ETF's to prop up the market. So the stocks getting trashed have a direct impact on retirees. Not good. And quit trying to spin this as a response to European or U.S. Markets. Japan is in WORSE SHAPE financially that any other western country. Negative 10 Yr Bond, Worst Debt to GDP ratio, two whole decades ALREADY lost.

Japan is LEADING THE WAY DOWN.

Gaijinfo

But since the citizens own the debt and not a foreign country, doesn't that lessen the danger as opposed to the EU or the US?

Foreign tourists walk past an electronic stock board ...

How do you know they're foreign? Maybe they're visiting from Kagoshima.

gaijinfo

BOJ has been using pension money to directly buy ETF's to prop up the market. So the stocks getting trashed have a direct impact on retirees. Not good

Very true and I've heard no one on NHK comment on this. The pension fund is going to take a big hit this year

FizzBitFeb. 13, 2016 - 08:13AM JST

But since the citizens own the debt and not a foreign country, doesn't that lessen the danger as opposed to the EU or the US?

And it's the citizens who take the hit, rather than business, who would have been more cautious in their investment.

"Look mommy, it's Abenomics!

@Fizzbit The biggest holder of Japanese bonds is the national pension system. So they won't be defaulting on other countries, they will be throwing retirees under the bus.

@christopher

I think they'll just cancel the debt.

the only ones making money are the bank owners, check their portfolio's and country club's. The real criminals are the banks themselves and stock pimps working at the exchange who help these henchmen strangle the people and businesses in Japan.

How do you know they're foreign?

I'm curious about this as well. They look like they could be Japanese to me.

So the stocks getting trashed have a direct impact on retirees. Not good

They are spending only up to 20 % of pension money. And this impact on retirees only when they sold and finalized the loss.

What these foreign tourists are actually thinking in the photo:

"Oh no, now I can't buy as much Japanese stuff with my foreign money."

However, had these been Japanese tourists departing Narita, they would be thinking:

"Cool, now I can buy more on my trip abroad!"

"the citizens own the debt"

It's not possible to owe yourself money...

This whole "they owe it to themselves" is a clever lie to avoid dealing with the issue.

SOME PEOPLE inside Japan owe the money to OTHER PEOPLE inside Japan.

The people that are OWED MONEY in Japan are largely pensioners and owners of bonds. (old people with NO INCOME and trapped in a country where not enough inflation is BAD).

The people that OWE MONEY is the government, and is the brokest government in the world. And thinks they can solve the problem by making everything more expensive.

First they look japanese to me.

Second, the stock market is tanking of course.

Third, WTF is the Yen gaining strength for? The economy sucks, the consumption tax will tank it more, and American Economic activity is strong and the world's growth engine. The Yen should be at ¥200 = $1.00

The market has tanked over 5,000 yen since last month that is relative to the Lehman collapsing period. The market will go down further around mid of April. It is not the end. Be ready.

TheGodfather

It's not possible to owe yourself money...

gaijinfoFeb. 13, 2016 - 02:13PM JST

This whole "they owe it to themselves" is a clever lie to avoid dealing with the issue. SOME PEOPLE inside Japan owe the money to OTHER PEOPLE inside Japan. The people that are OWED MONEY in Japan are largely pensioners and owners of bonds. (old people with NO INCOME and trapped in a country where not enough inflation is BAD). The people that OWE MONEY is the government, and is the brokest government in the world. And thinks they can solve the problem by making everything more expensive.

Couldn't have put it better.

Japanese tourists from Kagoshima wouldn't drag such big suitcases around in the city and watch the exchange rate. They look Chinese.

Couldn't have put it better.

Hey, I'm not an economics major, so please answer this question. Who has to pay it back? The tax payers if I'm not mistaken. Aren't the people in between just hired managers shuffling marks around the table, so to speak? Whoever has to pay it back, would seem to be the owners of it.

Fizz, youre questions are spot-on, and you highlight the absurdity committed by others of assuming Japan is a household, that MUST pay back its debt, and that the money from those payments somehow leave the system.

Japan's debt is held nearly entirely by its own people and institutions, is denominated in yen, which can only be made and spent in Japan, and if that weren't enough, is a leading global "safe haven."

Essentially this is why all the predictions of Japan having a crisis - or even risks - from its debt have never happened. And why all the Einsteins on this forum over the years have looked so silly by such repeated assertions that the BOJ's massive "money printing" experiment would turn the yen into "funny money" or create hyperinflation, or skyrocket interest rates.

"....and is the brokest government in the world."

See what I mean? Then come this government is not defaulting? When you're broke, you default. Right? Or you starve. Or you go to the IMF for bailouts. None of this is happening. Never mind that has Japan ended up as the world's biggest creditor nation, etc.

It might go worse than now,especially Yen is gonna try resistance level between 114-115,then big selling will take yen to 106 or little less(fibonaci level)i guess this sharp down will push government to intervene.This may happen before G20 Summit in Shanghai,this means still there hurry on down in Nikei,but am not worried about Japan economy up till now,its part of world stock markets instability.Whats going on in Nikei and yen is mere speculations,have nothing to do with BOJ or Government,these are just reasons they wanna sell us.

"Who has to pay it back?"

Future generations...

http://www.japantimes.co.jp/opinion/2015/10/30/editorials/japan-posts-murky-privatization/#.Vr81MUDnP4d

tinawatanabe: "Japanese tourists from Kagoshima wouldn't drag such big suitcases around in the city and watch the exchange rate. They look Chinese."

So, you think they came from China to watch the exchange rate? NO ONE went ANYWHERE to do that -- they are just people passing by. And I've seen Japanese people take bigger suitcases to go to the supermarket, so don't assume. Besides, given the fact that the young woman in the picture is pointing more towards the exchange rate with the Australian dollar (more so than to the interest levels beside it) they may well be Japanese people on their way to Australia, happy they'll get more bang for their yen.

smith, As a matter of fact I saw the caption. The man with the pink suitcase?