The Nikkei is lower by 2.2% in Tokyo, but Nikkei 225 futures are actually higher by 0.2% on the...


The Nikkei is lower by 2.2% in Tokyo, but Nikkei 225 futures are actually higher by 0.2% on the session as the early dive is not as bad as might have been expected by Friday's close in the States. It may be helping S&P 500 (SPY) futures, which are ahead by 0.3%.
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Comments (10)
  • markrpat
    , contributor
    Comments (244) | Send Message
     
    well, it may be. Or it may be that markets are confused. Maybe.
    2 Jun 2013, 09:41 PM Reply Like
  • lvdino
    , contributor
    Comments (8) | Send Message
     
    A lot of covering coming tomorrow morning in U.S., may send prices up for opening. Big move came late and seemed to be because of no buyers, not necessarily accelerated selling. I'll watch the volatility early to see if there's some fear creeping over the complacency
    2 Jun 2013, 09:49 PM Reply Like
  • positivethoughts
    , contributor
    Comments (2064) | Send Message
     
    Why does the Japanese government want to make things more expensive? Why is inflation good, but deflation is bad? As Peter Schiff has said, we have bought more phones and phone companies have made more money by giving us cheaper phones, not more expensive phones.

     

    How is it good if food, housing, services and everything else goes up in price? Wages always trail the rise in price of good and services, so as prices rise, the standard of living usually goes down.

     

    The only ones that benefit from inflation, as Ron Paul has said, are the ones who get the money first.
    2 Jun 2013, 10:56 PM Reply Like
  • divinecomedy
    , contributor
    Comments (465) | Send Message
     
    Because this is the only way to pay off their huge massive debt. Simple math. Let's say you have a 10 B debt. If prices keep tumbling, you'll need more sales,etc to cover the 10B but if prices keep increasing and sales pick up, it's easier to cover that number. This of course assumes that sales etc will keep up even when prices is increasing, the only way for that to happen though as you say is to have wages go up as well, but that can only go up if profits, etc exceed the comparable increase in salary, so you basically have a chicken and egg situation. Which is why the Japanese government is working to reduce the value of the Yen i.e. if you can't rely on domestic consumers, then weaken the Yen so that external consumers can subsidize the increase in salary for Japanese people, thus possibly jumpstarting the domestic economy.

     

    I am no expert in economy but that's my guess on the current government thinking.
    3 Jun 2013, 12:08 AM Reply Like
  • Bioalchemy
    , contributor
    Comments (175) | Send Message
     
    Moreover, the competitors have yet taken any solid action, any crossfire in the future will definitely kick down Japanese exports.
    3 Jun 2013, 01:35 AM Reply Like
  • Guardian3981
    , contributor
    Comments (2496) | Send Message
     
    In theory rising prices encourages people to buy now while falling prices encourages to buy later.

     

    However I always found the argument flawed, perhaps for certain high end products its true but if people need to eat or want to see a movie they will. They are not going to wait weeks to buy a loaf of bread.
    2 Jun 2013, 11:12 PM Reply Like
  • positivethoughts
    , contributor
    Comments (2064) | Send Message
     
    I think falling prices gives people peace of mind. I think rising prices makes people panic.

     

    Falling prices also encourages savings. Rising prices discourage savings. Savings are what is needed for investment. Investment is what is needed for production and real growth. That real growth is what encourages hiring and fuller employment.

     

    To have a society where everyone spends what they get, then borrows even more to spend even more than what they get, is a scenario for bubbles.
    2 Jun 2013, 11:16 PM Reply Like
  • Bioalchemy
    , contributor
    Comments (175) | Send Message
     
    It is tragic we learned QE from this country...
    3 Jun 2013, 01:37 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (4746) | Send Message
     
    oh great, our markets were linked to euro crisis in 2011 now we are gonna link with Nikkei?
    3 Jun 2013, 01:55 AM Reply Like
  • markrpat
    , contributor
    Comments (244) | Send Message
     
    simple and humorous in brevity. thanks madav, I needed a chuckle.
    3 Jun 2013, 02:03 AM Reply Like
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