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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Crimson Ghost who wrote (2869)3/24/2004 5:07:22 PM
From: NOW  Read Replies (21) of 116555
 
"Bank of Japan Governor Toshihiko Fukui, picked by Koizumi in March last year, increased the bank's purchases of shares from lenders by half to 3 trillion yen. The move limited stock-market investment losses that threatened to push banks' capital below required levels as the Nikkei dropped to two-decade lows last year.

Fukui has also kept interest rates at zero while pumping more money into the economy through purchases of bonds from banks. Under Fukui, the central bank increased the daily target for reserves the bank makes available to lenders by 60 percent to 35 trillion yen. "
This is only true if these were unsteralized purchases. we are being told that they are not by and large meaning no net change in liquidity picture.
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