Yesterday, the Bank of Japan announced two pieces of news in succession. In the morning, it suggested providing immediate liquidity for Japanese government bonds, and in the afternoon, it immediately provided spot government bonds! It was only possible to mobilize the Japanese Pension Fund, using the government bonds in hand as collateral, to borrow yen from the central bank to buy Japanese stocks, but it was not enough, so the central bank lent its own government bonds to GPIF, and then mortgaged them back to continue to release liquidity. So everyone saw that after 10 o'clock yesterday morning, the Nikkei began to slowly rebound, and continued to rebound in the afternoon, and finally pulled from negative 3% to negative 0.5%, but please note that these two pieces of news released three very important signals.
First, the Japanese stock market and the US-Japan hedging transactions are experiencing a liquidity crisis, and even to the extent that they must be supported immediately, otherwise the liquidation will immediately trigger a second wave of stock market crash. (Like 805 or even worse)
Second, this kind of support is contrary to the market's real choice, otherwise there would be no need to provide liquidity so urgently, so it is a delayed rescue operation.
Third, leveraged funds in the US and Japanese stock markets, as well as hedge funds, have reached a dangerous state where they must not collapse, otherwise it is likely to trigger a chain reaction, with multiple investors killing multiple investors. So the question is, this round of liquidity crisis has temporarily eased, but what about the next one? What about the next one? It has already reached the point where collateral is needed to borrow money, how long can it last?
In conclusion, the Japanese stock market is actually reacting to the US stock market, but it is still holding up. I guess the day for a rate cut is almost here#美国经济软着陆？ #美国大选如何影响加密产业？ $BTC $ETH
