Japan’s debt yields are the lowest in seven months relative to its major economic peers as a surprise contraction in the world’s third-largest economy cements expectations the central bank will print more money.
Investors have enough to worry about: the crisis in the euro area, the uneven U.S. recovery and the probable hard landing in China. So I hate to be the bearer of more worrisome tidings: They also need to start keeping a watchful eye on Japan.
Japan’s government, aiming to avert a collapse of confidence in its 882.9 trillion yen ($9.6 trillion) debt, may get a boost from a report tomorrow likely to show growth accelerated in the first quarter.
Japan will be forced to default on its debt, Greece’s economy is “done” and Iceland is worse off than Greece, said J. Kyle Bass , the head of Dallas-based Hayman Advisors LP who made $500 million in 2007 on the U.S. subprime collapse.