The Nikkei

[errolanderson]

Maybe this is a side-bar but . . .
Japan's Nikkei stock index plunged more
than 5% last nite. Is this the start of an
Asian correction?

Japan continues to wrestle with deflation
and appears to be not winning this battle.

[cottonpicken]

Its gone up 60% in 6 months.

Japanese bond holders are at the edge of the abyss.

[cottonpicken]

Errol,anyone,just read a surprising thing in the
producer,canadian farm debt is 72 billion,american is
230 billion,but their industry is 10x bigger,would
never have guessed those numbers to be so far out.

[errolanderson]

cotton . . . what is your take should the Nikkei continue its decline? My opinion is that it could spread through Asia. But is Bernanke at the dinner table enough for us to avoid the fallout?

[cottonpicken]

I think as things progress the bond market will
unravel and continue to be monetized,the volatility in
asset classes will be great and the public will always
demand something be done.

Measuring the value of something will be
hard.Example if the s&p hits new highs that where set
10 years ago is it a buy or a sell,with all the factors
involved.

I dont think there is a playbook for what is unfolding
so alls i'm doing is making educated guess's.

[sumdumguy]

I wonder what the lending practices are like at
Farm Credit. Think they are still lending on 10
year potential. Surely these high land prices
aren't being bouyed by speculative valuations.

[errolanderson]

U.S. consumer spending unexpectedly
declined in April (released this
morning).

There are hints of an U.S. economic
slowdown in the 2nd quarter, despite
political hype that the American economy
is mending. In my opinion, duct tape and
bailing twine is holding this so-called
recovery together for the statisticians.

Is the American stock market bull run
overdue for a correction? Continue to
eye Asia as a catalyst.

[cottonpicken]

Its quite the paradox,no matter how you look at it.

Currency crisis because of the level of debt and qe
chasing money into tangibles.

Economic weakness making the relative value of
tangibles questionable along with equities .

Often think of old Richard Russel,who said about a
decade ago"look,everybody is going to lose,its about
who loses the least"

[errolanderson]

Another sharp drop in the Nikkei overnight
and disappointing Chinese PMI reported
overnight. This problem in Asia may be a
pre-cursor to North America price action.

[errolanderson]

Is the jig up on Japan? Another sharp drop
last nite. Nikkei has now lost about 20%.

The reason this is brought up is; Japan's
equity rally is based on QE, just like the
U.S. . . . a precursor?