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

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To: Moominoid who wrote (54239)8/3/2006 8:51:45 AM
From: YanivBA  Read Replies (4) of 116555
 
I don't get it. Why are they still contacting? maybe they what to look dovish on the interest rate for the politicians but really be quite hawkish to the carry traders via a liquidity crunch.

I guess this is all to provide support for the Yen. But again, why? What does the BOJ have to gain from a strong Yen? Surely it's not to fight inflation. I just don't get it!

You know what? Maybe it is not the BoJ. Maybe they really did not plan it. Maybe the other side of the trade is the one to pull out. Maybe it is an endogenic liquidity contraction.

Early in the contraction people mentioned the 6 Trn as the final target. One more day like that and we are there.

Thanks for the heads up, Moominoid.

YanivBA.
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