Wednesday, February 13, 2013

That's where we get equilibrium!

Japan Stocks Extend Gains on BOJ Decision, Iwata Comments
Expectations remain high for the Abe administration and for the BOJ. The stock rally won’t slow down.
Uh oh. That statement is the kind of thing that nearly always makes me expect a slow down.
Iwata, a former Bank of Japan deputy governor, said the Japanese currency at 90 to 100 yen to the greenback is a return to equilibrium.
Okay, so economics actually doesn't work at all.  Only central bank manipulation can bring about equilibrium.  I never had that much faith in economics anyway.

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