Bank of Japan Governor Fukui Halts 'Free Money' for Hedgefunds,
Get Ready for the Blow Out!

May 10, (EIRNS) - The Bank of Japan Governor Fukui Toshihiko warned that the continued low interest rates are a threat to the Japanese economy. Bloomberg reported today that Fukui told the Diet: "If the expectation takes hold that low interest rates will continue regardless of the situation of both prices and the economy, then that could invite inefficient allocation of capital, including real estate and the yen carry trade." Fukui said "Low interest rates are supportive, but will hurt the economy if they are maintained too long."

Lyndon LaRouche noted that when Japan finally raises its interest rates, hedge funds will be blowing out around the world.

Investment News ran an article last week entitled "Japan to eye hedge funds," reporting that Japan has shown growing concern over hedge funds that operate within Japan, which manage up to 36 billion dollars. Japan announced that they will begin periodic reviews of hedge funds in Japan this autumn.