|
PureBytes Links
Trading Reference Links
|
The Japanese were the main players in treasuries from the late 80s to
the early 90s but the dollar depreciation was killing them. I don't
know if the Japanese banks were heavily involved in the yen carry
trade from mid1995. I know the hedge funds were because it was a no-
brainer. But those trades all got blown up by Bobby Rubin in mid-
late 1998 when the US Treasury started selling dollars against yen.
I remember dollar-yen collapsing from 147-115 within a week and from
130-115 within minutes on 10/98. Julian Robertson and this Tiger fund
was one of the big casualties. No question though the Japanese banks
have historically been big buyers of US treasuries. From 1999, alot
of the money was shifted to Euro debt. And look at what happened to
the Euro.
--- In realtraders@xxxx, thegonch@xxxx wrote:
> I thought all that Japanese money hade been financing the US budget
> deficit because it was parked in US Treasuries earning a lot more
than
> you can earn in Japan, and in a currency likely to stay stronger
than
> the yen as long as the underlying economy in Japan needed favorable
> exchange rates to support exports. Same, to a lesser extent, can be
said
> about the euro.
>
> Regards
> DanG
>
> bruce.larson@xxxx wrote:
> >
> > The Fed injects liquidity by buying back mainly short
treasuries. So
> > now the banks are sitting on alot of cash. The only way this is
> > distributed through the system is if the banks are willing to lend
> > this excess cash out and if borrowers see leveraged investment
> > possibilites. Japan loosened in the 90s but it didn't do the
> > domestic economy any good because domestic borrowers were
perceived
> > uncreditworthy. I'm sure the borrowers and investors were already
> > drowning in a tide of debt and stock market losses. Initally the
> > liquidity went offshore to Southeast Asian ventures which pretty
much
> > all bit the dust. Now all the money is parked in long Japanese
> > government bonds which last time I looked yielded about 1.4%.
Who in
> > their right mind would buy long-term debt in the world's most
> > indebted nation suffering through a severe recession and doing
> > everything it can to weaken its own currency? Better off putting
> > your money under a mattress.
> >
> > --- In realtraders@xxxx, profitok <profitok@xxxx> wrote:
> > > Hello
> > > Attach is the latest m3 money supply as reported by the fed
> > > ----- Original Message -----
> > > From: "STUART AUSLANDER" <u.stuart-auslander@xxxx>
> > > To: <realtraders@xxxx>
> > > Sent: Monday, October 01, 2001 10:05 PM
> > > Subject: [RT] Adjusted Reserves Sept 19, 2001
> > >
> > >
> > > > Adjusted reserves of the banking system which have varied
from 60
> > to 70
> > > > billion for the last 3 years(except during Y2K) grew from 68
bil
> > on
> > > > September 5 to 107
> > > > billion on September 19. (These are the Fed StLouis measures
of
> > the
> > > > required reserves need by the banking system to support their
> > > > deposits.) I would say the FED has taken out all the stops
and
> > intends
> > > > to dramatically stimulate the economy with money.
> > > >
> > > > It is my feeling (I would love feedback on this) that money
has
> > been
> > > > tight despite declining interest rates. Declining interest
rates
> > do not
> > > > necessarily make money loose. I suspect we have just seen a
major
> > > > change in FED policy.
> > > >
> > > >
> > > > To unsubscribe from this group, send an email to:
> > > > realtraders-unsubscribe@xxxx
> > > >
> > > >
> > > >
> > > > Your use of Yahoo! Groups is subject to
> > http://docs.yahoo.com/info/terms/
> > > >
> > > >
> >
> >
> > To unsubscribe from this group, send an email to:
> > realtraders-unsubscribe@xxxx
> >
> >
> >
> > Your use of Yahoo! Groups is subject to
http://docs.yahoo.com/info/terms/
------------------------ Yahoo! Groups Sponsor ---------------------~-->
FREE COLLEGE MONEY
CLICK HERE to search
600,000 scholarships!
http://us.click.yahoo.com/Pv4pGD/4m7CAA/ySSFAA/zMEolB/TM
---------------------------------------------------------------------~->
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|