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How Japan Could Wreck America’s Stock Rally

Talking Numbers

In case you missed it, Talking Numbers interviewed fund manager Bill Fleckenstein last week where he predicted that Japan was a huge risk for the world's markets. Here's the interview:

Here are some of the things Fleckenstein said last week on Talking Numbers:

"What is going on in Japan is potentially very, very dangerous not just for Japan but for world markets."

"Money printing such as the Japanese are doing and the Fed is doing is a lot of fun in the short run. That created two bubbles in the last decade but when it stops working, it’s a disaster."

"To the extent that the money printing from the Fed pushes stock prices up [and] causes people to take on more risk, if the problems reassert themselves or they show up in the form of a money-printing bond market blowup in Japan, then that creates an even bigger problem here."

"The immediate risks are if the bond market turbulence in Japan starts to accelerate soon and what that might mean to treasuries here if it does. That’s the risk most people aren’t focused on. And then the other risk is the fact that stock prices being high make them riskier, especially when people are being a bit careless."

Watch the video above for more of Bill Fleckenstein's insights.

See also this video from Monday on why Marc Faber is using this as a buying opportunity: Dr. Doom: Correction Coming for Japanese Stocks, Yen

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