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Communism/Capitalism ? (Read 126 times)
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Communism/Capitalism ?
Sep 13th, 2017 at 1:07pm
 
WTF Chart Of The Day: BoJ Now Owns 75% of Japanese ETFs

While ECB President Mario Draghi faces his own German-bond-market constraints in his hubristic bond-buying-bonanza, cornering him to taper sooner than later; the Bank of Japan appears to have thrown every textbook out of the window and cranked their plunge-protection to '11', as Bloomberg reports, The Bank of Japan now holds 75% of the nation's ETFs.

Since December 2010 - when The Bank of Japan held no ETFs at all - the central bank has been buying ETFs† (doubling its annual buying target to 6 trillion yen in July 2016) as part of unprecedented economic stimulus. While the Nikkei 225 Stock Average has risen 89% since December 2010, the BOJís dominance of the ETF market has raised concerns.

In fact, in a circular vicious cycle, the Bank of Japanís purchases have helped assets managed by ETFs surge almost 10-fold since the end of 2010 to 25 trillion yen ($230 billion).

As the chart below shows, the central bank now owns three quarters of such funds by market value...


Even the head of Japanís stock exchange Akira Kiyotasays he is unsettled by the risk of "constant distortion" posed by the central bankís exchange-traded fund buying.

The impact on Japanís overall stock market may be limited because the total value of BOJ ETF holdings is the equivalent of just 5 percent of the Topix market capitalization.

But, any tapering of such purchases may erode demand, particularly for stocks in which it is a dominant shareholder.

At this rate, the BOJ could dominate 80 percent of the ETF market by year-end.

Once it decides to stop buying, or even start selling, itís not clear what the stock market impact will be or who will buy that amount of ETFs.

http://www.zerohedge.com/news/2017-09-11/wtf-chart-day-boj-now-owns-75-japanese-...


Nah, capitalism isn't a scam.
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Re: Communism/Capitalism ?
Reply #1 - Sep 13th, 2017 at 1:13pm
 
Switzerland is buying US stocks on an enormous scale
And the SNB is buying massive quantities of dollars and euros, paid for by printing hundreds of billions in Swiss francs.

The SNB owns about $80 billion in US stocks today (June, 2017) and a guesstimated $20 billion or so in European stocks (this guess comes from my friend Grant Williams, so I will go with it).

They have bought roughly $17 billion worth of US stocks so far this year. And they have no formula; they are just trying to manage their currency.

Think about this for a moment: They have about $10,000 in US stocks on their books for every man, woman, and child in Switzerland, not to mention who knows how much in other assorted assets, all in the effort to keep a lid on what is still one of the most expensive currencies in the world.

Switzerland is now the eighth-largest public holder of US stocks. It has got to be one of the largest holders of Apple.



Central banks and governments exacerbate the bubble

http://www.businessinsider.com/swiss-national-bank-owns-80-billion-us-stocks-201...

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Re: Communism/Capitalism ?
Reply #2 - Sep 13th, 2017 at 1:32pm
 
PFP.
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Re: Communism/Capitalism ?
Reply #3 - Sep 13th, 2017 at 1:39pm
 
Been to the police?
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