Stocks Jump On Hope For More Central Bank Intervention After Japan’s Quintuple Recession, Syrian Strikes

While the world’s attention remains focused on the aftermath of the Friday the 13th terrorist attack in France, which overnight took a decidedly more lethal turn when France unleashed a bombing campaign of the Islamic State capital of Raqqa, bringing the number of nations flying warplanes over Syria to 3 (in addition to the US and Russia), the biggest economic development was Japan’s Q3 GDP print which as we reported overnight, badly missed expectations, and dropped significantly for the second quarter in a row, resulting in something truly unprecedented in modern Neo-Keynesian history – a quintuple dip recession.
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Which, as so often happens in these upside down days, was the best thing that could happen to the market, because another economic slowdown means the BOJ, even without sellers of JGBs, will have no choice but to expand its “stimulus” program (the same one that led Japan to its current predicament of course) and buy up if not government bonds, then corporate bonds, more ETFs (of which it already own 50%) and ultimately stocks. Because there is nothing better for the richest asset owners than total economic collapse.

This post was published at Zero Hedge on 11/16/2015.