ECON JAPAN'S NIKKEI TANKS PART TWO

[Doomer Doug]

Doomer Doug thinks the people in Japan didn't like what they saw happen on Friday in the Nikkei 225. They spent all weekend thinking about it. They didn't like what they were thinking.
Sure enough, gang. Right off the opening bell the Nikkei started in a downward direction. The morning session closes at 11 am Japan time I think. The Nikkei is currently down 375 points and 2.57 percent. This erases the measly "rally" in the last half hour of trading last session.

You will recall that the last trading session had a 1000 point swing. It had a 400 point upward move in the last one half hour of trading. The yen is also strengthening by going down. This will impact Japan's exports.
Yep, we are looking the ongoing chaos continuing into this week. Of course, the whores on Wall Street won't have to deal with this till Tuesday. This should give them all of this session and all of next session to realize they are screwed. Braying Bernie is going to have an interesting time of it Doomer Doug thinks.

 

[Doomer Doug]

PUMP MONKEYS NOW IN ACTION!!! It must be nice to have a few billion yen to throw at the stock market.

The pump monkeys have got a 50 plus upswing from their spraying money at the market.

 

[Doomer Doug]

The pump monkeys are losing their touch. The Nikkei is now down 418 points and 2.86 percent. This is two percent lower than the close last session. We still have the afternoon session to get through. That was the one with the wild 400 point swings in the final 30 minutes. The last trading session it went up the morning session. This one it is going down. This could mean we will see even a more massive down move in the afternoon session. Of course, the pump monkeys will still be around. No doubt a brilliant statement from a Japanese politician will save the day. Fortunately, Braying Bernie isn't around to start he hawing. This fact alone may prevent global economic chaos.

 

[Reborn]

bump

 

[Doomer Doug]

The Nikkei is now down over 450 points and 3 percent. This is the morning session. We still have the lunch break and the afternoon session to go.
Japan's newspapers are now openly saying the margin calls are what is doing the damage. The Nikkei has a firewall at 14,000 points. This is only 157 points to go.
The market apparently closes for lunch at 11:30. We will see no new reports until 1 pm I think. At any rate, Japan's Nikkei is only 157 points away from breaching the 14,000 level. Once that happens, a tidal wave of margin calls etc will start.

 

[Bumblepuff]

Overseas investors nervously wait for the arrival of a cyber pump monkey who is
bringing an advanced algorithm to match the wild stock market fluctuations. If the
messenger beats the clock, they will make money, but if the cyber pump monkey
gets detained by an insider who bribes him with bananas, then the investors will
go broke and then go bananas, but in a different form yet still figuratively fruity.​

 

[Vegas321]

-455.11, down 3.11%

 

[night driver]

Bumble, THANK YOU....I used to LOVE "Time Tunnel"...

 

[ittybit]

The Japanese pulled the plug by implementing "Abe-nomics" and they will keep to course to the end, IMO, regardless if they drive the plane into the turf or not. They are consistent and committed if nothing else.

Europe just gave notice that they are going to be shutting down the "shadow banking system" (where bonds are used multiples of times as collateral for backing financial arrangements). You know if they are talking about it publicly that the big fish were let out before they are starting to close the gates. Kyle Bass confirms this with discussion that owners of bonds are pulling them out of the hands of Primary Dealers and back into their own vaults. So, these who have the bonds are already pulling the system apart trying to get them back.

What these actions mean is that Europe is dismantling a $80 trillion funding conduit and their financial system will indeed seize up due to a lack of "grease" to make financial arrangements happen. Japan will debase their currency by at minimum 50% and in the process will destroy their bond holders' principle, which has been a major source of liquidity for the world.

The USA has been doing its share by enabling the FED to buy 31% of all outstanding US bonds, meaning that the grease is getting very thin here as well. Additionally the appetite for multi-trillion $ US deficits pretty much as been maxed out.

How this is going to look? One day you'll wake up and the economy will grind to a halt, you will not have any access to deposited funds, and no one will know what is going on, why or for how long...and we've already discussed these scenarios enough.

 

[Doomer Doug]

No pump monkey magic this afternoon. Down 470 points and 3.22 percent. OUCH!
Europe is going to freak out. Wall Street will have until Tuesday morning to contemplate things. Japan will have another trading session before New York opens. Assuming we have a repeat of the last two trading sessions chaos things could get real interesting. 143 points and the Nikkei breaches the 14,000 firewall. After that, who knows?

 

[tanstaafl]

I don't know how important the 14,000 level is considering it only broke that (going up) as a closing number just three weeks ago (on May 6th). The Nikkei was closing in the 12,000's as recently as April 5th and in the 11,000's as recently as March 7th. So I'd think the argument could be made that a consolidation or even a pull back is entirely within the realm of possibility.