Sunday, March 13, 2011

Maybe it does start with a bang

Thursday, 10 March 2011, shortly before midnight Chicago time (CST) a 9.0 earthquake hit Japan. Then the tsunami struck. And a chain of volcanoes from Russia to Indonesia erupted - going out on limb here, probably tripped by the epic earthquake. Then six (as of now) nuclear reactors' cooling systems are failing or failed.

What next for Japan?

The Japanese stock markets plunged on open, triggering circuit breakers. Financial Times reports the Bank of Japan plowed Y7 trillion into the markets to prop them up.  Yen worldwide is being repatriated to invest in repairing/rebuilding Japan.  What is not reported in that article but should be assumed is the Fed doing the same plunge protection in the Sunday overnight futures markets and ready for the Monday open of US markets.

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