Thread: What's Happening In Japan For 2008?

Originally Posted by Rod

Is a correction coming, or has it already corrected?

At this point, I'm neutral on it.

With Friday's 4% loss, I don't know what to think now...

Greenspan Put Takes New Shape as Sovereign Funds
You know something is screwy in the global economy when the yen is surging at a time when investors are buzzing about a Japanese recession. The soaring yen against all currencies is a perfect manifestation of eroding global investor sentiment. It's also an intriguing extension of the "Greenspan put.'' A put option gives the buyer the right to sell a security, commodity, index or futures contract at a specific price by a specific date. Such a trade protects the holder against a decline in prices. In recent years, traders enjoyed the "Greenspan put,'' a reference to former Federal Reserve Chairman Alan Greenspan's weakness for bailing out markets and investors when things got dicey. Now, complacent executives and in-over-their-heads investors are enjoying the "Bernanke put'' as Greenspan's successor, Ben Bernanke, compliantly cuts rates to soothe markets.
http://www.bloomberg.com/apps/news?p...d=aZE8QzeqTMiY

Originally Posted by Fivetears

Greenspan Put Takes New Shape as Sovereign Funds
You know something is screwy in the global economy when the yen is surging at a time when investors are buzzing about a Japanese recession. The soaring yen against all currencies is a perfect manifestation of eroding global investor sentiment. It's also an intriguing extension of the "Greenspan put.'' A put option gives the buyer the right to sell a security, commodity, index or futures contract at a specific price by a specific date. Such a trade protects the holder against a decline in prices. In recent years, traders enjoyed the "Greenspan put,'' a reference to former Federal Reserve Chairman Alan Greenspan's weakness for bailing out markets and investors when things got dicey. Now, complacent executives and in-over-their-heads investors are enjoying the "Bernanke put'' as Greenspan's successor, Ben Bernanke, compliantly cuts rates to soothe markets.
http://www.bloomberg.com/apps/news?p...d=aZE8QzeqTMiY

That's partly behind the 15 percent surge in the yen in the last six months -- one that's causing hand-wringing in Tokyo. As the U.S. subprime contagion oozes around the globe, traders are betting sovereign wealth funds will support risky assets. That, in turn, is putting downward pressure on the dollar and boosting the yen.

Wrong! I don't think this reporter really understand the Yen carry trade.

The Nikkei lost 11.1% in 2007.

The Nikkei 300 has lost another 12.63% in just 3 weeks.

Currently tanking another 500.