{"id":8103,"date":"2015-05-14T05:47:40","date_gmt":"2015-05-14T10:47:40","guid":{"rendered":"http:\/\/olduvai.ca\/?p=8103"},"modified":"2015-05-14T05:47:40","modified_gmt":"2015-05-14T10:47:40","slug":"its-official-the-boj-has-broken-the-japanese-stock-market","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=8103","title":{"rendered":"It&#8217;s Official: The BoJ Has Broken The Japanese Stock Market"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2015-05-13\/its-official-boj-has-broken-japanese-stock-market\" target=\"_blank\">It&#8217;s Official: The BoJ Has Broken The Japanese Stock Market<\/a><\/h3>\n<p>As those who follow such things are no doubt aware, The Bank of Japan often says some very funny things about inflation expectations and monetary policy. Essentially, the bank is forced to constantly defend its QE program because as it turns out, monetizing the entirety of gross JGB issuance and amassing an equity portfolio worth just shy of $100 billion on the way to cornering the ETF market comes across as insanely irresponsible even in a world that is now defined by insanely irresponsible central banks.<\/p>\n<p>Perhaps the best example of the BoJ\u2019s absurd rhetoric came in late March when Governor Haruhiko Kuroda said the following about the bank\u2019s 10 trillion yen equity portfolio:<\/p>\n<ul>\n<li>KURODA: BOJ&#8217;S ETF PURCHASES AREN&#8217;T LARGE<\/li>\n<\/ul>\n<p>As\u00a0<a href=\"http:\/\/www.zerohedge.com\/news\/2015-03-25\/bank-japans-10-trillion-equity-portfolio-not-large-says-bank-japan\">we noted at the time<\/a>, either we don\u2019t know what large means, or Kuroda is simply making things up as he goes along. Meanwhile, the BoJ continues to provide Nikkei\u00a0<a href=\"http:\/\/www.zerohedge.com\/news\/2015-03-19\/bank-japans-plunge-protection-desperation-may-buy-individual-stocks\">plunge protection<\/a>\u00a0on an almost daily basis. Here\u2019s what we said in March:<\/p>\n<blockquote>\n<div class=\"quote_start\"><em>The world has now officially given up any pretensions that Japan\u2019s elephantine QE program isn\u2019t underwriting the rally in Japanese stocks. Not only is the Bank of Japan buying ETFs, they\u2019re targeting their purchases to (literally) ensure that stocks can\u2019t fall by stepping in when things look weak at the open. Unfortunately, Kuroda looks set to run up against the extremely inconvenient fact that while, in his lunacy, he can print a theoretically unlimited amount of money, the universe of purchasable ETFs is limited and so eventually, the BoJ will own the entire market.<\/em><\/div>\n<\/blockquote>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It&#8217;s Official: The BoJ Has Broken The Japanese Stock Market As those who follow such things are no doubt aware, The Bank of Japan often says some very funny things about inflation expectations and monetary policy. Essentially, the bank is forced to constantly defend its QE program because as it turns out, monetizing the entirety [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[57,85,88,2854,452,5411,5410,1225,534,661,662,1138],"class_list":["post-8103","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-japan","tag-boj","tag-bonds","tag-haruhiko-kuroda","tag-japan","tag-japanese-government-bonds","tag-jgb","tag-kuroda","tag-monetary-policy","tag-qe","tag-quantitative-easing","tag-stock-market"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8103","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8103"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8103\/revisions"}],"predecessor-version":[{"id":8104,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8103\/revisions\/8104"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8103"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}