[Kyoto, Japan] – I think I hear the sounds of helicopter engines warming up in Tokyo.
Newly elected 2nd time Prime Minister Shinzo Abe has officially tapped Haruhiko Kuroda as the next head of the Bank of Japan and the financial markets here seem quite pleased.
Since rumors of his nomination surfaced in conjunction with Shinzo Abe's election campaign last November, the Nikkei has risen nearly 30%. But the Nikkei's rise is based on little more than hope and "Abenomics" – which is not unlike U.S. markets that have risen with each new infusion of Bernanke Bucks.
Unfortunately, disappointment is the more likely outcome when reality sets in.
It's not that there is anything wrong with Kuroda-san. He's aggressive and has a solid track record as president of the Asian Development Bank. Like many here he wants to ease monetary policy even further to stimulate the economy out of the hole it's dug for itself over the past 23 years.
I just question what "else" he possibly can do to fix it.