Stocks Sliding: A Wave of Municipal Bankruptcies Looms, Japan Food And Energy Prices Rise; All Others Drop, China Risks A Crisis
July 26th, 2013
With hotter than expected inflation in Japan (yes we know that’s what they wanted), it appears (from Nikkei and JPY) that there is a growing concern Kuroda will back off just a little during his speech on Sunday night (NY time) from the print-til-we-stink paradigm. Japanese stocks are down over 5% since Tuesday and the JPY is surging (suggesting markets are crying out for Kuroda to do a Bernanke and shift to longer/lower forward guidance). US equities – dragged by JPY-related carry unwinds – are also diving, back near yesterday’s lows.