Japan’s chaos goes on 5-28-13

The level of chaos in Japan’s Nikkei Stock Market is astounding. Today’s session saw a rise of 400 points, from 13,950 to 14,350. It then saw a 300 point drop, from 14,350 to 14,050. It is currently wandering around the 14,150 range.
One trading session had a swing of 1,000 points. Several others have had 300 to 500 point swings in a matter of minutes. Doomer Doug has watched the graph go up or down 50 points a minute. This level of chaos, what the experts call market volatility is not sustainable.
Japan is in trouble. This means the world is in trouble. If Braying Bernie and his plunge protection team weren’t pouring billions in TARP money into the 30 stock Dow Jones Index, the USA markets would be down thousands of points by now.
It will take some time for all this to play out. The FED is now buying virtually all US government debt. This is also not sustainable for much longer. It was Braying Bernies admission of this that lit the fuse that is now burning in Japan.

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2 Comments

  1. Doomer Doug is thinking Japan’s version of the pump monkeys is going to spend a lot of money to keep the market up. Doomer Doug has come to respect the technical ability of the pump monkeys over the years. They have rigged the global stock markets to the point that economic reality no longer factors in the value levels. Still, there are some fundamental issues about debt that no pump monkey can deal with long term.
    Braying Bernie has openly said that the easing efforts are now ending. Once you stop squirting lighter fluid on the barbeque the flames die. Japan will continue to show massive market volatility. This ongoing volatility will eventually, sooner or later, lead to a market collapse. The Nikkei is now down over 25,000 points from its 40,000 December, 1989 high.
    The blunt truth is the market has now permanently lost over 60 percent of its value. The American Nasdaq has also lost over 50 percent of its March, 2000 high of 5200.
    The market crash has been ongoing for 20 years in Japan’s case, and 10 years in the Nasdaq’s case. The damage has already been done. The markets lost 90 percent of their value in the Great Depression. That number sounds about right. As to the day, week, or month it will happen? The pump monkeys complicate matters for any objective observer. How can you tell what a stock market is going to do when it is rigged?
    This will play out in the time frame the pump monkeys allow. At least until the global chaos overwhelms them.

    Reply

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