Have bank problems started in Japan? + Question
 

Hi,

From yesterday's (4/1) Japanese market commentary:

[quote]

Mizuho Financial Group, the world's largest bank by assets, tumbled 8.76 percent to 81,200 yen, having earlier hit a record low of 80,600 yen. Second-ranked Sumitomo Mitsui Financial Group Inc (Tokyo:8316.T - News), which also hit a lifetime low at 186,000, was down 4.98 percent at 191,000 yen.

In addition to selling by foreign hedge funds, traders said corporations were shedding bank stocks to cut their losses on the sector as unrealised losses balloon.

"Banks aren't really restructuring, the economy doesn't look like it will improve, and bad loans appear set to increase. Investors are guessing that bank stocks may fall even more," said Yukiko Ohara, bank analyst at Credit Suisse First Boston.

[unquote]

Also, may I ask a question? In a worst-case scenario, like bank runs, what would happen to 10-year Treasury Notes?

Thanks in advance,

- Boyd

They go bye-bye
 

Boyd, it goes back to reality (as usual).
Wealth is goods/services or the knowledge to produce them. First layer on that is the trading
commodity. In our case, dollars. All else is a claim on wealth. Not wealth. Treasury notes are
a black hole if the banking system goes belly up.
Remember, our money is not backed by gold but
our full trust in the Federal Gov;t (God help us).
They took us off the gold standard so they could
inflate the currency.
Investment advice - The Alpha Strategy by john
Pugsley
How bad is it?
Burning Money by Peter Grace
I'll have to look up the title of the one by the
guy in Cleveland. It was frightening.
And you know about Kurt Saxon.
Trade in you t-bills and get a years supply of
food and store as much water as possible. If the
banks go, have a champagne party cause champagne
will be cheaper than water. He-he.

> Hi,

> From yesterday's (4/1) Japanese market
> commentary:

> [quote]

> Mizuho Financial Group, the world's largest
> bank by assets, tumbled 8.76 percent to
> 81,200 yen, having earlier hit a record low
> of 80,600 yen. Second-ranked Sumitomo Mitsui
> Financial Group Inc (Tokyo:8316.T - News),
> which also hit a lifetime low at 186,000,
> was down 4.98 percent at 191,000 yen.

> In addition to selling by foreign hedge
> funds, traders said corporations were
> shedding bank stocks to cut their losses on
> the sector as unrealised losses balloon.

> "Banks aren't really restructuring, the
> economy doesn't look like it will improve,
> and bad loans appear set to increase.
> Investors are guessing that bank stocks may
> fall even more," said Yukiko Ohara,
> bank analyst at Credit Suisse First Boston.

> [unquote]

> Also, may I ask a question? In a worst-case
> scenario, like bank runs, what would happen
> to 10-year Treasury Notes?

> Thanks in advance,

> - Boyd

You, sir, are one of the smartest people ...
 

Hi,

Thanks for your info. You're one of the smartest people I've ever met (judging by your forum messages and our email correspondence).

Good luck to you, and good luck to me, and good luck to those who disagree.

Best,

- Boyd

I'm curious ...
 

Boyd -

Disagree with what? Please explain the position you are taking.

Robert Campbell

My wife has a 'toast' ...
 

Hi,

Not sure if 'toast' is the right word, but anyway, she has an expression that goes "Here's to you and here's to me, and here's to those who disagree." It always makes me smile when she says that.

I just adapted her expression for my 'good luck to you' thing, and other than making it rhyme I didn't mean very much by it. I just got into a momentary verbiage jag.

Best,

- Boyd