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I have a problem finding credence with any article which talks about preventing a future financial crash without mentioning the Central Bank Of Japan. They've
by ZoeZoeBee 10y ago
I have a problem finding credence with any article which talks about preventing a future financial crash without mentioning the Central Bank Of Japan.
They've taken the liberty of purchasing vast amounts of equities in the hopes of financing the Japanese retirement fund.
>While the Bank of Japan’s name is nowhere to be found in regulatory filings on major stock investors, the monetary authority’s exchange-traded fund purchases have made it a top 10 shareholder in about 90 percent of the Nikkei 225 Stock Average, according to estimates compiled by Bloomberg from public data. It’s now a major owner of more Japanese blue-chips than both BlackRock Inc., the world’s largest money manager, and Vanguard Group, which oversees more than $3 trillion
http://www.bloomberg.com/news/articles/2016-04-24/the-tokyo-whale-is-quietly-buying-up-huge-stakes-in-japan-inc http://www.bloomberg.com/news/articles/2016-04-24/the-tokyo-...
Demographics and central bank balance sheets being what they are, there is no way these purchases can continue indefinitely and this is certainly not indicative of a healthy market.
- mathattack 10y agoCompletely different topic. This is talking about reducing counter-party risk in derivatives by creating central counter-parties. (Of course derivative counter-party risk was more a symptom of the real estate driven crash, but that's another story) There are dozens of other problems which can cause the next one. Most regulations fight the last war, so the next one will be different.