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Train wreck on 26 February 2012
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Stefan.De.Machtige said:
Train wreck said:

One of the biggest roadblocks for all Japanese exporters has been the stubbernly high rate of the yen against other trading partners for the better part of a decade.  The Japanese government tried unsuccesfully to stem the Yen gains by selling yen on the open market when it reached critical levels (85Y/Dollar, day after the japanese earthquate/tsunami) but they only worked temporarly.  

Back on February 15 2012, the japanese government did something different, it increased the amount of money it would print (from thin air) buy a staggering 10 trillion yen and marked a 1% inflation target (i.e. more printing in the future).  These two actions, along with Japan worsening trade balances, were the rocket fuel that the japanese exporters needed and most of the stocks have been off to the races since. 

The Yen went tfrom 76 per dollar to now almost ~82, the euro went from 97 to ~110(!) (both in less than a month), these are close to record moves for a months time. Unless business has deterioated significantly from December 31st (which it hasn't), analyst will start to raise earnings estimates and Sony will not report a -220B Y loss this past fiscal year due the the imporving curreny situation.

It's one less thing Kaz has to worry about in turning around the company since there is pretty much a permanment put for the curreny from here on out.

Wow!

That sounds like a desperate move from the japanse goverment. Their debt pile is huge already. Japan is sailing more and more into a troubled future.


Japan debt pile is definatly a misnomer.  I have a link from two years ago I saved from the FT outlining japanese debt, its a good read as people always get their debt situation backwards.

 

http://blogs.ft.com/martin-wolf-exchange/2010/06/13/does-japan-really-have-a-public-debt-problem/#axzz1nXWE8imx