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Discussion in 'The Economy' started by Tropo, 15th Jun, 2012.

  1. Tropo

    Tropo Well-Known Member

    17th Aug, 2005
  2. Chris C

    Chris C Well-Known Member

    2nd Apr, 2008
    Brisbane, QLD
    I see paragraphs like this and all I can think is poor old kyle bass... he seems to be falling victim to the old analogy of "the market can stay irrational longer than you can stay solvent"...


    I've said it a few times on this forum already, I can't believe how low the 10 year JGBs have been getting of late at the same time the yen has been strengthening...

    I can't fathom the charade lasting another 5 years, as per the article. I give it 24 months tops.

    Japan isn't like other heavily indebted nationals, its public finances don't get in trouble at 7% like Greece, Italy, Spain et al, they go ass up at much over 2%, so when those JGB's hit 1.5% sometime in the next year or two it will be race to the life boats...


    Events in Europe are probably one of the few things saving it right now. Worst case scenario for Japan is the European crisis is solved the market will leave JGBs at such a rate I think it will begin a market sell off that won't be containable and the yen will plunge.

    This will probably push USTs to all time highs and even Aussie bonds will probably do quite well admits all the chaos.