"Ramsey, I believe you got it right, someone IS cooking the books and some has supported the Nikkei to go into the end of the year well above the critical 14,000. .... (witness last night's tumble which is been artfully reversed tonight)"
Ramsey & Zeev,
Interesting theory. New readers to this thread may wonder why 14,000 Nikkei is critical for Japan's economy. It's because below that level, banks apparently have to report their stock holdings at their true value(a loss). If the Nikkei holds above that, then they report the price they purchased their equity investments at. If I'm not mistaken, unlike the US, the Japanese government can purchase securities directly to prop up the market.
In the FWIW fundamental news department, the big drop was because of the figures I mentioned in the WSJ yesterday. The next days reversal was because of some comments their version of Robert Rubin made concerning Japan's economy. And tonight, holy cow, the Nikkei is up 661 points(16,378). Or up 4.20%. I don't know if it will hold till the close. But just thought I would mention it now in case it does not. What a ROLLER COASTER ride: quote.yahoo.com^N225&d=1y
I have to admit, the fundamental news for today's 4.20% rise is fairly lame(IMHO). Supposedly foreign investors are encouraged that the government is going to spend money on public works projects and banks are using public funds to bail themselves out of trouble. As if we haven't heard this for years.
All in all, some interesting ideas coming out of this thread regarding Japan, Korea, China, etc. It wouldn't surprise me if we start to see them in the financial media soon. Thanks to all that contribute.
MikeM(From Florida) |
