Japan to buy Nikkei stocks...
Japan announced it's going to monetize anything and everything in sight... including the Nikkei.
reuters.com
Japan government may buy stocks from market-Nikkei
Tue Feb 24, 2009 1:11pm EST
NEW YORK, Feb 24 (Reuters) - The Japanese government and ruling coalition are considering a plan to use taxpayer funds to buy stocks and other assets directly from the market to help prop up prices, the Nikkei financial daily reported.
The report reflects growing concern that falling stock prices will lead to more losses among banks and other companies and put further stress on Japan's weak economy.
Tokyo's stock market is down about 18 percent this year.
Under the proposal, the range of assets that could be bought under an existing program also would be expanded to include exchange-traded funds, the Nikkei said.
The purchases would be made through the Banks' Shareholding Purchase Corp, set up to help to revive the Japan's weakened banking sector, which was burdened by bad loans after a decade-long 1990s recession and the bursting of the tech bubble in 2002.
Legislation that would allow the agency to resume stock purchases and tap a total of 20 trillion yen ($207 billion) in government guarantees has already been submitted to parliament.
The agency would finance purchases by procuring funds from commercial banks and other institutions, with the government guaranteeing principal and interest payments, the Nikkei said in its report, which did not cite sources.
Another proposal under consideration is the joint launch of a new stock-buying organization by the government and the private sector, the Nikkei said.
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Yet another positive for gold/gold stocks.
Didn't help today however.
Great open for gold stocks...as it should have been.
But, then gold stocks rolled over with the DOW.
I got stopped out of half my HL. (this SOB is becoming
my personal Anti-Christ).
Flipped just a bit, maybe 1/3rd of my ABX from yesterday
on the pop (should have flipped it all <vbg>).
And now we're right back to the abyss, teetering on
HUI 285 support. A fast round-trip to no wheresville.
I think we're seeing fund managers do, what individual traders
also do... that neither should ever do. And that's to sell
winners to raise cash, or to average down into losers.
A lot of people are getting spooked out of this market,
and the fundies are liquidating to meet redemptions.
I put my SDS 2 x S&P short on, and I'm hedged as long as
the gold stocks don't exceed 2 x the S&P to the downside.
But, I was hoping to catch the trade "right" in both directions,
with gold up and the market down.
But, better a wash, than nothing.
Gotta run... going to buy some garlic to wear around
my neck tonight, to ward off the HL "gap down" open
curse that I'm sure will haunt me by 9:31 a.m. tomorrow.
Mo later. |
