Earlier we posted a fantastic presentation from Bienville Capital on why the Japanese stock market has been on fire. It essentially boils down to: Lots of room for more easing.

Why is there so much room to ease?

Basically, because the country has done so little.

While its true that the Bank of Japan has done QE a number of times, the truth is that it's been a real wuss.

As this chart shows, the actual growth of the balance sheet has been super-small compared with other central banks since the crisis (granted, Japan started sooner).

It's in part for this reason that since the crisis, the Nikkei has been a huge loser, compared to the S&P.