The global collapse of ‘24 - Investment in rebuilding society (BEARS ONLY - not the gay kind)

I found out what really happened.

The bank of japan has raised interest rates last week for the first time in decades, from 0.1% to 0.25%.

This has blown up something called the “yen carry trade” whereby people borrow Japanese yen at near 0 interest rates and then invest that money in treasurys, us corporate bonds, stocks, bitcoin, etc

Since the bank of Japan never raises rates and people figured they’d never be able to due to their debt to gdp being like 200%, people took CRAZY leverage to do this carry trade.

So now that the bank of Japan has raised rates, the yen is appreciating. That means that it now takes more USD to buy yen. Which means that the money they borrowed in yen and converted to USD now takes more USD to pay it back.

This is compounded by the crazy amount of leverage people put on this trade. They are having to liquidate assets to cover their positions and buy yen, which in turn causes the yen to appreciate… which causes the problem to worsen, furthering the cycle.

The best part is, the USA cannot bail them out by cutting interest rates. If the Fed cuts interest rates right now, the USD will further depreciate against the yen, making the problem WORSE.

Japan does not want to cut rates because inflation was starting to run away from them.

So now we see: does the BoJ cut rates and cause the yen to hyperinflate and destroy Japan, or does the rest of the world eat shit?

FYI the yen carry trade is estimated at about 20 trillion USD globally.
 
So now that the bank of Japan has raised rates, the yen is appreciating. That means that it now takes more USD to buy yen. Which means that the money they borrowed in yen and converted to USD now takes more USD to pay it back.

At one point this year, the exchange rate was $1 USD = 160 Yen, the lowest the Yen was worth to USD, and now it is currently $1 = 143 Yen.
 
im simple person so i put in a order to buy a bunch of sqqq shares at market open
hopefully if SHTF it will help to offset losses.
with how badly crypto dumped i think theres potential for a pretty bad market reaction
 
Right now I'm all in on BTC. A majority of it I bought in 2022 when it was $16k or something, the rest I bought in 2023 after dumping all my NVDA and AAPL. I haven't done the math but I'm up around 400% on my initial investment. It's not too late for BTC bros, let it dump and start accumulating. I've got no clue where the limit is but I won't be surprised if we see $100k before the end of the decade
 
I found out what really happened.

The bank of japan has raised interest rates last week for the first time in decades, from 0.1% to 0.25%.

This has blown up something called the “yen carry trade” whereby people borrow Japanese yen at near 0 interest rates and then invest that money in treasurys, us corporate bonds, stocks, bitcoin, etc

Since the bank of Japan never raises rates and people figured they’d never be able to due to their debt to gdp being like 200%, people took CRAZY leverage to do this carry trade.

So now that the bank of Japan has raised rates, the yen is appreciating. That means that it now takes more USD to buy yen. Which means that the money they borrowed in yen and converted to USD now takes more USD to pay it back.

This is compounded by the crazy amount of leverage people put on this trade. They are having to liquidate assets to cover their positions and buy yen, which in turn causes the yen to appreciate… which causes the problem to worsen, furthering the cycle.

The best part is, the USA cannot bail them out by cutting interest rates. If the Fed cuts interest rates right now, the USD will further depreciate against the yen, making the problem WORSE.

Japan does not want to cut rates because inflation was starting to run away from them.

So now we see: does the BoJ cut rates and cause the yen to hyperinflate and destroy Japan, or does the rest of the world eat shit?

FYI the yen carry trade is estimated at about 20 trillion USD globally.
Good Comment.

I'll place this video here as it validates a few things, However I'm meh on the vblogger. His info is fine but he's Meh... Makes me want to drink Crank and Champaign and Do Fear and Loathing in Las Vegas.

 
I found out what really happened.

The bank of japan has raised interest rates last week for the first time in decades, from 0.1% to 0.25%.

This has blown up something called the “yen carry trade” whereby people borrow Japanese yen at near 0 interest rates and then invest that money in treasurys, us corporate bonds, stocks, bitcoin, etc

Since the bank of Japan never raises rates and people figured they’d never be able to due to their debt to gdp being like 200%, people took CRAZY leverage to do this carry trade.

So now that the bank of Japan has raised rates, the yen is appreciating. That means that it now takes more USD to buy yen. Which means that the money they borrowed in yen and converted to USD now takes more USD to pay it back.

This is compounded by the crazy amount of leverage people put on this trade. They are having to liquidate assets to cover their positions and buy yen, which in turn causes the yen to appreciate… which causes the problem to worsen, furthering the cycle.

The best part is, the USA cannot bail them out by cutting interest rates. If the Fed cuts interest rates right now, the USD will further depreciate against the yen, making the problem WORSE.

Japan does not want to cut rates because inflation was starting to run away from them.

So now we see: does the BoJ cut rates and cause the yen to hyperinflate and destroy Japan, or does the rest of the world eat shit?

FYI the yen carry trade is estimated at about 20 trillion USD globally.

"You can't do this Japan! Sure it would help you a bit but think of the damage to the entire world financial system!"

"Rol." Said the Nip. "RMAO."
 
I'M WALKIN ON SUNSHINE

OOAAAAAAWWW OAW OH

WALKIN ON SUNSHINE

OOOAWWW OAW OH

YOU'VE GOT TO FEEL GOOD!

This market has been laughably overpriced for years now. I'd argue it never finished correcting during the bear market of '22. Seeing everything finally unravel feels so good. 5% down, at least 20 to go. It will feel great to finally buy stock again.

Now, for the housing market.
 
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