Unpleasant market

Well, Japanese government bonds downgrade of S & P but has become a hot topic, honestly, because personally is good news, even if, it was not picked up yesterday. After all, the "rating" is the probability of "default". on which it is not impossible that 100% Japanese yen of government bonds is "default (default)", as usual bank loans outstanding in the case of Japan has decreased, domestic deposit excess is expanding.

As expected, for the financial markets, it does not become a big deal this time of material downgrades.

"Long-term interest rates temporary 1.21%, in the US bond sales and stock pullback - back to the level of the previous government bonds downgraded
http://www.bloomberg.co.jp/apps/news?pid=jp09_newsarchive&sid=a9_MYLgVf.oE
Long-term interest rates fell to a temporary 1.21% in the bond market. On the 27th evening the US credit rating agency Standard & Poor's (S & P) is I was brought back to the level of before the downgrade Japanese government bonds. In addition to the day before the US Treasury market has risen, in addition to pullback in the domestic stock market has become a support, that investors put buying in-kind bonds of medium- and long-term zone has boosted the market.
Yamawaki Takashi chief fixed income strategist at JP Morgan Securities, for today's rally, said, "In addition to stock price is down, because the newly issued 10-year bond yield is above 1.2%, buying was easy to enter." (Koryaku) "

Inadome Mr. Mitsubishi Morgan S certificate - rule of thumb suggests lower interest rates: "Japanese government bonds downgraded
http://www.bloomberg.co.jp/apps/news?pid=jp09_newsarchive&sid=abYtDE5TW4hA
Inadome Katsutoshi bond strategist at Mitsubishi UFJ Morgan Stanley Securities, on the domestic bond market after a downgrade by past international rating agencies was pointed out that the case be reacted with lower interest rates there were many, "of investors in this market after downgrade interest rates rise room become a support is a potential demand I have expected to limited ". "

When the rating of government bonds is lowered, and would have lowered interest rates as become "rule of thumb", What a nasty market (can be taken by S & P).
I leave refused, and interest rates in government bonds downgraded to rise, domestic financial institutions ran out to buy to just "It Tsu!", A situation that would immediately lower than before the downgrade interest rate, quite pleased It does not. After all, the more there is no domestic demand for funds, that is, because I mean that that serious deflation.

By the way, if you read the book, such as Mr. Richard Koo, only, S & P just does not seem at all understand the "balance sheet recession". Conversely, other rating agencies I think rich is a possibility that through the Japan government bonds.

Well, not in the financial-market to material Although it is Japan government bonds downgraded, we are supposed to be interesting to political.

"Nihon Keizai Shimbun January 27, 2010," Prime Minister Naoto Kan, is out of touch to "such a thing in Japan government bonds downgraded '"
Prime Minister Naoto Kan on the 27th evening, heard from reporters at the Prime Minister's Office, the US rating agency Standard & Poor's (S & P) is being questioned about what has downgraded the government bond rating of Japan from the "double A" to "double A minus" "Now for the first time was it just came out from. This conference. Since a little ignorant to such a thing, was also said to want "by again to. "

A country's prime minister on the day that he said, such as "(downgraded Toka) things like that ignorant to" is, if normal country becomes a capital flight, it is that there is damage of interest rates soared and the like. But, it does not occur in particular nothing happened in the case of Japan. Such as really rating agencies, "For international financial markets", it would be unbearable markets hate hate, Japan.

That said, financial aside, there is very politically. After all, this person,
"I wonder in one fell swoop if starts to flow funds to. Foreign rating has dropped two-stage Moody's government bonds have been found in there is a risk. Noh weather of Prime and Finance Minister to crash against the Japanese government bonds."
Once, there always are speaking in 2002 (the Koizumi Cabinet era). What do you say, and Boomerang also come up here, I there a virtuosity.

By the way, at this time of turmoil (although I think that still continues), are you saying that it should be noted, it is this person.

"Representative Minna Watanabe" It's downgrade of the prime minister himself, "" It is a liar politician disqualification "
http://sankei.jp.msn.com/politics/news/110128/stt11012813300019-n1.htm
Watanabe Yoshimi representative is the 28th day of the press conference of Your Party, in the downgrading of the "Prime Minister's own issues who spoke as" ignorant to do that "in long-term government bonds downgrade of Japan by the US rating agency Prime Minister Naoto Kan, Prime Minister Kan In because tax increase without a fiscal consolidation took place from that difficult. Overcoming deflation, it was criticized in that "deviated from the common sense of the world. (Koryaku) "

Your most. Such as tax increases without deflation, or rather the world, we have deviated from the common sense of the history of mankind.
Referred to as the inflation target theory, called the recognition of the tax increase, Your Party I think decent respect to fiscal policy. Well, but will the brain (Takahashi) is good.

That said, Your Party but it is got to deny such as "public investment", a direct demand expansion measures. Although I think that's an extension of the "bureaucracy bad theory", the current Japan of deflation,
"Do Okeru entrust such as bureaucracy!"
It is not a situation that can be liked "luxury things," and the like, all kinds of monetary policy, there necessarily think it's seriousness that must mobilize the fiscal policy.