That is what happens when you start printing money like mad, the yen lost like what, 30% in few months?
Actually printing the money like mad is responsible for the rise in stock markets. And for a variety of reasons:
1 - The artificially low interest rates hurt savers. So, many people move some money out of banks and into stock markets.
2 - The Banks are using the new liquidity to buy stocks ("assets")
3 - Corporate stock buy backs in America, who are the largest buyers of large blocks of stocks, are 88% higher than last year. See, when you make free money available, companies will take advantage. They buy back shares, lowering outstanding shares, which ups their profit (fewer outside owners).
I'm sure there are more reasons...
With all the buying coming from the above, I really wonder how it crashed today? A lot of people, for whatever reason, must have sold. Or hedge funds, etc.
But, I do think the game the banks are playing is a lose lose situation and will eventually (in a few months to years) lead to a stock market crash, via the currency crashing.
IAS
