The “Panic Premium”: Beyond This Level In The USDJPY Japan Collapses

by Tyler Durden
ZeroHedge.com
12/02/2014

If all it took to push stocks to ever recorder(est) highs, granted on no volume, but recorder(est) highs nonetheless, was for correlation algos to pick a carry FX pair trade du jour which to push the Nikkei, or the Dax, or – most frequently – the S&P higher, then all equity indices would already been in scientific digit territory. And since they aren’t, it is only logical that prosperity through currency debasement can only “work” for so long.

But how long? Well, when it comes to the primary carry pair du jour, the Dollar-Yen, the answer may be just a few hundred pips more, before it all comes unglued for Japan’s Prime Minister whose first stint in the role ended in a prophetic bout of epic diarrhea, Shinzo Abe.

The Rest…HERE

This entry was posted on Tuesday, December 2nd, 2014 at 5:06 pm and is filed under Economics, Government Evil, New World Order, World Politics. You can follow any responses to this entry through the RSS 2.0 feed.