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Stocks, bonds, commodities, and precious metals are going nuts today on news that the Bank of Japan is set to uncork the mother of all quantitative easing schemes.The BoJ specifically said it could by everything, from commercial paper to ETFs. ETFs! Stocks!
What’s the idea here?
The BoJ is desperate to weaken the yen, but so far it’s done terribly at this. Now it wants to convince the market that it’s a rabid dog. You have no idea what kind of crazy thing they’re going to do next. And you don’t try to guess or figure it out. You just know they’re going to do something crazy.
So if you’re a speculator snapping up the yen, beware, the BoJ is CRAAAAAAZY. They could buy anything at anytime without any regard for the value of the yen.