A while ago, we suggested that the US government become a giant hedge fund.  Instead, the government has decided to become a prime broker!

However, someone in the Ministry of Finance in Japan reads Running of the Bulls because Japan is thinking about buying stocks!

The report reflects growing concern that falling stock prices will lead to more losses among banks and other companies and put further stress on Japan's weak economy.

Tokyo's stock market is down about 18 percent this year.

Under the proposal, the range of assets that could be bought under an existing program also would be expanded to include exchange-traded funds, the Nikkei said.

The purchases would be made through the Banks' Shareholding Purchase Corp, set up to help to revive the Japan's weakened banking sector, which was burdened by bad loans after a decade-long 1990s recession and the bursting of the tech bubble in 2002.

Legislation that would allow the agency to resume stock purchases and tap a total of 20 trillion yen ($207 billion) in government guarantees has already been submitted to parliament.

With stocks in Japan at 1981 levels, and a wide-range of stocks trading below net cash value, methinks that such a venture would pay off enormously for the Japanese government years down the road!