MAC

[Jean]

Taking into account that :

 

The last world economy crisis is spreading/worming its way everywhere including in Russia, China;

 

The $ and yen value have increased of about 20/25% during the last 3 months;

 

Christie's last auction seem to indicate that people spend less and less money.

 

Are these effects aready noticeable in Japan?

 

What is the share of Western countries in Japanese Nihonto market?

 

Has any NMB dealer member notice a slow down in the businees, is it slack?

[Brian]

Every dealer here that I have met has mentioned the slowing down of business. Even those that do little business overseas have seen a drop in trade. I am not sure how long they can let the Yen stay this strong, but it is definitely having an affect. Togishi too...same comments.

 

Brian

[Jean]

Thanks Brian for this prompt answer

[John A Stuart]

Jean, On the news this morning Japan gov. admitted recession is official with last 2 quarters negative growth. Interest rates are raising. It helps banks but puts the burden on us. John

[Bungo]

Just read Deutschland is in recession in the Economist magazine BUT not France.

Credit must be given to Carla

and now...........http://www.washingtonpost.com/wp-dyn/co ... id=topnews

 

question....... what's the meaning of " MAC " in regard to thread /topic title ?

 

Milt

[Jean]

MAC (I love acronymes - NMB introduces me to them) means Material Adverse Changes and is a commonly clause in International Credit contracts which allows the lender to ask for a total reimbursement of the loan in case there is a brutal change in the Economical environment of the Borrower.

 

Ex: Stock Exchange has collapsed (NYSE, NIKKEI, CAC40 ..), Japanese yen has increased its value by 25% since 2/3 months, these Material Adverse Changes prevent me to buy the 3 Tokuju I was targetting I had in mind.

 

PS : It is a metaphore/example, of course

[Bungo]

  Jean said:

MAC (I love acronymes - NMB introduces me to them) means Material Adverse Changes and is a commonly clause in International Credit contracts which allows the lender to ask for a total reimbursement of the loan in case there is a brutal change in the Economical environment of the Borrower.

 

Ex: Stock Exchange has collapsed (NYSE, NIKKEI, CAC40 ..), Japanese yen has increased its value by 25% since 2/3 months, these Material Adverse Changes prevent me to buy the 3 Tokuju I was targetting I had in mind.

 

PS : It is a metaphore/example, of course

 

but my dear friend, since all asset class( other than cash ) is heading towards the same direction, shouldn't we call it " neutral " instead of " adverse " ?

 

milt

[Jean]

Milt my friend, We are heading a bit but I shall brieffly answer you.

 

All changes affecting negatively assets, affect cash. Or cash circulation is vital for Economy ===> I hope not but we could be heading towards a depression, prices going down but nobody buying. Cash is vital but where does it come from : from selling assets. Crisis ==> cash shortage, Your e-bay business could be affected and a lot of people have already, in the States, been hit by the sub prime crisis, GM is almost bankrupt, all is aiming towards a major crisis which shall and has already affected the Art Market and our Nihonto market

[DirkO]

Hmmm maybe this is misguided, but wouldn't the following happen :

Sellers can't flog their stuff because there are less buyers with extra cash out there => The ones that do have some extra cash get good deals, coz the sellers will inevitably lower their prices and start to work with smaller margins ?

[Jean]

  Quote

The ones that do have some extra cash get good deals, coz the sellers will inevitably lower their prices and start to work with smaller margins

 

In time of crisis, seldom does cash go to Art Market - Auction Houses are going to face bleak days and so dealers.

 

Extra cash shall be invested in sectors having an IRR much higher than Nihonto. Nihonto markei is too narrow and is far from being a high yield market.

 

Forex is also a component to be taken into account.

[Jean]

http://www.aoi-art.com/christmas/main.html

 

I don't remember having seen Christmas sale in past years ...

[Brian]

Quick, someone buy that Daido katana before I am tempted to spend money I really don't have

Some good prices there. That Daido really appeals to me with that o-kissaki and naginata hi through the nakago.

 

Brian