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BOJ Governor Haruhiko Kuroda continues his campaign to calm the markets after last week's...

BOJ Governor Haruhiko Kuroda continues his campaign to calm the markets after last week's volatility, saying that Japan's banks are strong enough to withstand external shocks such as rising interest rates and a deteriorating economy. And should the economy recover, increasing rates wouldn't even have much of an impact on the soundness of banks.
Comments (2)
  • winningtrader
    , contributor
    Comments (2476) | Send Message
     
    Actually, Japanese banks are loaded with JGB's and if rates go up by 1% or so, most of them are going to be totally bankrupt. To prevent rates from going up, the BOJ will most likely have to double its current QE program to start printing the equivalent of ~$140 billion per month and that is in an economy 1/3 the size of the US economy. They are screwed.
    Keep in mind that with the current QE at $70 billion per month, hardly any money is available to purchase existing bonds, as most of the money goes to fund the huge government deficit. This is the Keynesian nightmare.
    26 May 2013, 04:07 PM Reply Like
  • yliu54
    , contributor
    Comments (170) | Send Message
     
    Japan is hardly saved now...
    26 May 2013, 04:25 PM Reply Like
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