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Subject:  Re: BOJ: Potentially Important Date:  3/9/2006  2:45 PM
Author:  Lokicious Number:  15745 of 37057

So, I just saw a headline: US Stocks Lower In Spite of BOJ Move. I'm guessing at some point earlier it said, stocks higher because of, but missed it. Love this stuff.

I don't think the concern is with the direct impact of slight changes. One concern is that a change by BOJ in the amount of money it is printing will have a hyperbolic ripple effect if momentum traders and all that leveraged money starts trying to beat the rush to the exits.

The longer term issue fits a Catastrophe Theory mode: incremental changes can build up and lead to catastropic changes. Here the concern is that the US economy is a house of cards: we are living beyond our means, borrowing against inflated assets, workers competing against those with lower standards of living. BOJ has certainly been contributing to enabling this, since Japan gets a lot of the trade deficit, and although I agree it is a good thing for this addiction enabling to end, producing a soft landing may be wishful thinking.
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