Sunday, April 10, 2016

Human History's Biggest Margin Call aka. 1997 x 2008

Japan exported $3 trillion of capital over three years during human history's largest monetary experiment. Now it's all returning overnight, as currency-induced losses force accelerating unwind...momentum begets momentum...

The fantasy of the day is that the BOJ can now stop this force unwind by using more intervention:

BOJ balance sheet with JPY: