Why Japan crashes the world economy

It is little understood why the gambling on the Japanese yen is going to kick off the big crash , so when the markets open to a rather hard correction, it will be mainly due to a thing called the carry trade on the Japanese Yen...which can be summed up on an arbitrage on the interest rates between Japan and the USA , that is you can borrow at low interest rates in Japan and invest in higher interest rates in the USA which is great until Japan put there interest rates up..and the gambler has to pay a margin call which elevates the debt in a very nasty way....nothing happens by chance so this might well be the way they kick of the "great reset"

Bye bye Matrix

I wonder what the next week will bring. I wonder which stocks will do fairly through this crash if it happens?

a reply to: cherokeetroy

So what should happen now? ...every one who has any liquidity left and those who can borrow should be investing in hard assets. So the guy who took the PUT out for a hundred thousand on silver hitting two hundred by September wasn't that stupid after all. Since the Japanese are really pissed off about that medication this is gonna hit certain people where it hurts.

Black Swan

originally posted by: annonentity
a reply to: cherokeetroy

So what should happen now? ...

Perfect storm.

a reply to: visitedbythem

Berkshire Hathaway has sold 35 billion worth of stock this quarter. They have got out sitting on cash ready to jump in after the carnage? Which tends to suggest it is all over bar the shouting.

a reply to: annonentity

Well this financial entrepreneur and business media reporter explains the 'why' in simpler terms along with other reasons for the down:

There will still be uncertainty until the American elections in November, but I suspect that markets will start to recover in a few weeks or perhaps a bit longer and this will go down in the economic history books as a lesson hopefully be to be learned about not borrowing too much in a seemingly cheap currency to leverage assets in a much more expensive currency.

www.skynews.com.au... ia-on-the-brink-of-a-recession/news-story/5851c2ee894b930de647d80e6d5978eb

Another bit of news for us average folks:

“One or two-day moves shouldn't make much of a difference for most people. Most people in their 401Ks or through their planning with an advisor have a more diversified portfolio. When the entire market does go down. Your portfolio is going to go down but is it going to be something that changes your future planning? Not likely,” Rhodes said.

Rhodes said even experts really don’t know how this situation will unfold over the days and weeks, but individual investors just need to stick to their gameplan, and they’ll likely be fine.

www.msn.com...

Sticking to your gameplan is what every different financial investor told us over the last 20 years...the ups and downs of investing over an extended period of time never changes.