Thursday, December 18, 2008

Japan Planning to Buy $227 Billion in Their Own Stock Market

This will not end well. Captain says, "Buckle up, this flight is about to experience severe turbulence!" This type of direct intervention into the equity and currency markets will further destabilize global markets. Japan has already actively been manipulating the Yen. Direct intervention in equity markets will completely destroy trust, it is in direct conflict with the word "free." Competitive devaluing of currencies is a new marker on the path to the transformation of our entire economic system. Get ready.

According to MarketWatch:

NEW YORK (MarketWatch) -- Japan's government said Thursday it is submitting a bill to parliament allowing for the purchase of 20 trillion yen ($227 billion) in stock to help stabilize the Japanese stock market, Kyodo news reported. Under the bill, the Banks' Shareholding Acquisition Corporation, originally created in January 2002, would resume buying shares from banks and other entities, the Japanese news agency reported. The bill would be introduced early next month "with an eye to implementing the measure by the end of March," the report quoted lawmakers as saying. The Liberal Democratic Party had intially considered just 10 trillion in stock purchases, but the size was roughly doubled to 20 trillion yen at the request of its ruling coalition partner, the New Komeito party, the report said.