Home / Scott Bleier

Scott Bleier

Read Scott here on iBankCoin and also at http://www.createcapital.com/

BOJ To Expand Asset-Purchase Fund By Y10T (about $130 Billion)

13 Feb 2012 23:03 EST DJ BOJ Expands Asset-Purchse Program By Y10T, Revises Wording Of Price Target

TOKYO (Dow Jones)–The Bank of Japan decided Tuesday to expand its asset-purchase program again by Y10 trillion and changed the wording of its price target following political pressure to strengthen its commitment to ending deflation.

The central bank’s policy board said it will boost the size of its asset purchase program including low-cost loans–the main tool for credit easing amid near zero interest rates–to Y65 trillion from Y55 trillion.

Only one out of the 11 analysts polled by Dow Jones Newswires had predicted the BOJ to ease. Most BOJ watchers had said that while there were concerns over the impact of the strong yen and the European debt crisis, neither financial nor economic conditions had worsened to levels that warrant immediate further action.

The BOJ policy board also revised the wording of its “understanding of price stability,” saying now it has set a “price stability goal” of 2% or lower in the core consumer price index in the medium- to long-term and a goal of 1% growth for the time being.

The bank had come under criticism that its definition of price stability, the goal it seeks to achieve in its fight against deflation, was too convoluted and vague.

Faced with a prolonged deflation, politicians have stepped up their calls on the BOJ to take fresh action, with some threatening to revise legislation to strip away the central bank’s independence from the government.

The bank’s policy board voted unanimously at the end of a two-day meeting to leave its policy rate–the unsecured overnight call loan rate–in a 0.0%-0.1% range.

The dollar rose against the yen on the BOJ action, climbing to Y77.87 from Y77.59 before the announcement, the highest since Jan. 26.

The additional easing “was certainly a surprise to the currency market,” said UBS senior dealer Hirotsugu Inoue.

Additional easing by a central bank will increase the supply of money in the economy and therefore tend to push down the currency’s level.

The Japanese government bond market rallied on the news with the benchmark 10-year JGB bond futures contract rising to 142.68 from 142.37, pushing the yield down to 0.960%.

The central bank also maintained the size of its asset purchase program–the main tool for credit easing amid near zero interest rates–at Y55 trillion.

Market participants will now focus on Gov. Masaaki Shirakawa’s comments at a press conference from 0630 GMT, to seek an explanation for the move.

-By Megumi Fujikawa and Tatsuo Ito, Dow Jones Newswires; 813-6269-2786; [email protected]

Comments »

Buy Till the End of July? NO WAY

Do you think that the equity market has been good till just the other day?


Except for a handful of favorite stocks, there has been deterioration for months…

Look at some industry groups…Thanks to Bespoke

Comments »

YOKU doing a $600m Secondary less than 6 months after IPO. And why not?

05 May 2011 23:08 EDT DJ Youku.com, Investors Plan Up To $600 Mln Share Offering

BEIJING (Dow Jones)–Chinese online video company Youku.com Inc. (YOKU) said it and some of its investors plan to sell up to $600 million worth of American Depositary Shares in the company, with the majority of the offering composed of primary shares issued by Youku.

Youku said in a prospectus filed with the U.S. Securities and Exchange Commission dated Thursday the $600 million figure includes additional shares that its underwriters could choose to buy, in addition to the secondary shares to be sold by investors who invested in Youku before its initial public offering in December. It didn’t elaborate.

The firm didn’t specify the number of American Depositary Shares it and its investors will sell.

-By Owen Fletcher, Dow Jones Newswires; 8610 8400 7702; [email protected]

Comments »

You want PROOF the stock market is full of shit? Read on!

As this “run on the bank” was happening, the stock market was making new all time highs. And it continued until it could no longer be contained. It’s happening again now without the pretense or secrets. Plus now add in revolutions in oil producing countries and the third largest economy in the world off-line.


Comments »

Can these numbers be real?


I hate to “Zero Hedge” you, but I’ve gotten to thinking after reading this.

I don’t have the time/correct information/brain cells to know if these numbers are true. If they are, all I have to say is “holy shit”, it’s even worse that we know. How can this keep going? How can the chickens not come home to roost? My guess is that it will be just in time for the next Presidential Election cycle…

Comments »

Forget the “real” world. Only the world of the market counts.


This is supposed to be the reason for another ravenous, low-volume bounce. Don’t worry, recent events are the foundation and justification for further market gains!

Amazingly, everything that is happening has not jolted the populace. But if the stock market dropped 10%, it would all suddenly matter…

Comments »