Another reason why it’s important for people to start thinking about secondary markets as saving and not investment. When your accumulated savings starts swinging 7% intraday it makes it hard to plan for life….For those who likely aren’t watching, the Nikkei Index has done just that – an intraday move of almost -7% from its highs.
For the sake of the Japanese people I hope this isn’t the beginning of an insane rollercoaster ride, but I do fear that such blatant central bank manipulation is likely to end in just that – more volatility in people’s savings. I guess we can debate whether that’s a good thing or a bad thing, but I still maintain that this is highly irresponsible policy no matter how high the central bank can jam prices…
