What one other asked, he hasn't clarified. I didn't take his request for asking what advice there was on Japanese markets. I think he was asking what I would do if I were in Abe's shoes. However, I cannot be sure, and that's why I asked for clarity. I know English isn't your first language, but you might want to re-read his question and then wonder where the "japanese market" advice question came from (hint: You, not him). If you want Japanese market advice, here's a good one for you: Short Yen on rallies. What advice will you give us on "Japanese Markets"? Other than this:
thank God you just misunderstood and nobody actually asked you what to do if you were Abe. He was simply asking what your take was of the market as New Jersey insurance adjuster. I am sure he will appreciate your wisdom of Japanese markets. Thank you for sharing, I am glad you mastered this tough one. Finally we can all rest. Cheerios.
Bloomberg: Signs of inequality in Japan are increasing as people living on their own fall further behind and wealthier households accumulate more assets, according to surveys released Thursday by the Bank of Japan. The ratio of single-member households with no financial assets climbed to almost 48 percent in 2015, the highest level since 2007, from about 39 percent a year earlier, according to an annual survey by the central bank. At the same time, households with two or more people who held assets such as stocks and bonds saw these rise to a record high 18.2 million yen ($149,597), a separate BOJ report showed. The widening inequality highlights Prime Minister Shinzo Abe’s challenge as he seeks to spread the benefits of record corporate profits and stock prices that this year reached levels not seen since 1996. Low-income households are feeling the effects of last year’s sales-tax hike and limited wages gains while more well off Japanese are benefiting from the swelling value of their investment portfolios. “Inequality seems to be widening,” said Hiroshi Hanada, head of economic research at Sumitomo Mitsui Trust Bank Ltd. “A sales-tax hike and price increases last year hit households hard. Abe hasn’t succeeded to bring benefits to most ordinary people.” Right. Abe hasn't really "succeeded" in doing much, but as the above seems to indicate, one thing that hasn't been a problem is making the rich richer. Of course improving the plight of everyday Japanese is an entirely different story... ...and inflation expectations are a disaster... ...and as for the economy, well... So, there you go. But as long as the rich are doing well, we suppose this is fine. Of course then again, what's about to happen here is that Japan is going to run out of monetizable government bonds. Once that happens, the BoJ will need to consider two alternatives: 1) buying pretty much the entirety of the Japanese ETF market, and/or 2) resorting to direct deficit financing (i.e. "helicopter money"). While neither of those options will fix the country's demographic problem or do anything to change the fact that Tokyo is headed for "failed state" status by 2018, there may still be some more room for the rich to get a little richer vis-a-vis the peasantry so, mission accomplished? Charts and excerpt from ZeroHedge
Japan in Recession Again: How Many Times is That? Bloomberg notes Japan Enters Recession as Economy Contracts in the Third Quarter. Japan’s economy contracted in the third quarter on sluggish business investment, confirming what many economists had predicted: The nation fell into its second recession since Prime Minister Shinzo Abe took office in December 2012. Gross domestic product declined an annualized 0.8 percent in the three months ended Sept. 30, following a revised 0.7 drop in the second quarter, the Cabinet Office said Monday in Tokyo. Economists had estimated a 0.2 percent decline for the third quarter. Weakness in business investment and shrinking inventories contributed to the contraction amid concerns over slower growth in China and the global economy that prompted Japanese companies to hold back on spending and production. While growth is expected to pick up in the current quarter, the GDP report could put pressure on Abe and Bank of Japan Governor Haruhiko Kuroda to boost fiscal and monetary stimulus. The BOJ holds a policy meeting later this week. Second Recession or Fifth? It may be the second under Shinzo Abe but ZeroHedge posted this chart on the Quintuple-Dip Recession. Abenomics has been a total failure, as expected. But it did weaken the yen sending the stock market soaring. Mike "Mish" Shedlock
More unmitigated success. More Abenomics Failures: Retail Sales and Factory Output Contract, Businesses Reject Wage Hike Plea; Fine-Tuning à la Buiter Complete Failure of Abenomics Abenomics is back in the spotlight tonight. Results show a complete failure on three fronts: retail sales are down, factory output is back in contraction, and the most humiliating of all, Japanese firms have outright rejected Prime Minister Shinzo Abe's plea for higher wages. Retail Sales Decline, Factory Output Contracts Please consider Japan output, retail sales slump, dampen recovery prospects. Japan's factory output fell for the first time in three months in November and retail sales slumped, suggesting that a clear recovery in the world's third-largest economy will be delayed until early in 2016. While manufacturers expect to increase output in coming months, the weak data casts doubt on the Bank of Japan's view that an expected pick-up in exports and consumption will help jump-start growth and accelerate inflation toward its 2 percent target. Industrial output fell 1.0 percent in November from the previous month, more than a median market forecast for a 0.6 percent decline, data by the trade ministry showed on Monday. Separate data showed that retail sales fell 1.0 percent in November from a year earlier, more than a median forecast for a 0.6 percent drop, as warm weather hurt sales of winter clothing. Wary of soft growth, the government plans nearly $800 billion in record spending in the budget for the fiscal year that will begin on April 1. The BOJ has signalled readiness to expand stimulus if risks threaten Japan's recovery prospects. The central bank fine-tuned its stimulus programme on Dec. 18 to ensure it can keep up or even accelerate its money-printing. Fine-Tuning Damn that weather. It's always too hot, too cold, or too perfect for retail sales. The only possible conclusion is central banks need to fine-tune the weather to get predictable outcomes. Not to worry, there's the tried-and-failed method of more government spending as a fallback mechanism. Businesses Reject Abe's Plea to Hike Wages As if weather-related fine-tuning was not problematic enough, the Japan business lobby head won't commit to higher wages The head of an influential Japanese business lobby won't pass on the government's requests to its members to raise salaries next year, a worrying sign that real wages may not increase fast enough to boost consumption in the country. "The government is hoping for higher wages, but the Keizai Doyukai, as an organization that corporate executives personally belong to, is not going to tell its members what to do," said Yoshimitsu Kobayashi, chairman of the Keizai Doyukai, which regularly participates in the government's corporate policy panels and is one of Japan's top three business lobbies. "Companies that don't have money obviously won't raise wages." Higher wages are crucial to policymakers' efforts to break a decades-long cycle of weak growth and deflation. Prime Minister Shinzo Abe has won modest wage gains from the largest firms, but this has been slow to filter through the economy. Around 65 percent of people work at small and medium-sized enterprises, many of which are losing money and are therefore unlikely to raise salaries or spend extra money on training employees. More Fine Tuning Needed What's with these damn corporations? Why do they insist on making a profit anyway? Clearly this misguided and very unpatriotic behavior must be fixed at all costs. And I have just the solution. As part of the fine-tuning effort, all Abe needs to do is guarantee minimum corporate profits. Should that fail, there's always the last resort of free helicopter-drop money for everyone. Lord knows how important it is to slay the deflation dragon once and for all. Don't take my word for it. Instead, listen to Willem Buiter, Citibank's Chief Economist.