https://asia.nikkei.com/cms/Business/Markets/Equities/Japan-stocks-dive-4-451-points-more-than-Black-Monday-in-1987
Yen surges to 142 per dollar as potential U.S. recession spooks investors
Headline is a bit disingenuous as it is the most points (because the total points is higher) but only the second highest percentage (1987 still 1st).
Thank you for posting this, that was my first assumption reading the headline. Anytime I see numbers without a percentage in a headline, or vis versa, I'm immediately suspicious.
After all, there are 3 types of lies: lies, damned lies, and statistics.
Well it's also caused the US market to dive, even overnight. Looks like the big correction is finally biting down.
Robinhood killed 24 hour trading. Dip is apparently being bought now that premarket is open. Very sketchy tho.
I think at this point anyone still on Robinhood knows what they're getting into. If after turning off the buy button you didn't get a big boy broker, that's on you.
The other brokers didn't need to turn off the buy button because they didn't extent free credit to anyone with a pulse
I think the real Robinhood is rolling in his grave. And his merry men as well, they're all spinning in their collective, fictional graves.
What's robinhood have to do with the market dunking overnight? I can't fathom any real relation.
It's the largest 24 hour brokerage in the US. There was too much sell volume, that their execution venue had to stop it which is a pretty big deal.
Largest by individual accounts, maybe. No way were enough robinhood users watching Japan's market in the dead ass of the middle of the night to sell off all those billions worth of stocks to make such a dive. Those hits were taken due to institutional sellers.
Do we know where the sales mostly came from?
Random speculation: Could be banks needing to pull out of the market due to the Fed signaling September rate cuts due to the higher-than-expected unemployment report. This will cause a drop in yield for savings, which would cause people to reduce what they have in those accounts.
Well, they announced a rate hike in Japan, so that would seem to be a more immediate cause.
In fact, there's some analysis that suggests that Japan's rate hike contributes to the dip in the other markets. Evidently it was a thing for people to borrow yen, use that to get other currencies, and then buy stock and sell the stock to repay the loans. Since the yen has climbed 14% versus the USD in the past few days, those loans suddenly became awfully expensive.
Random speculation: Could be banks needing to pull out of the market due to the Fed
...
Japan stocks
I mean... it could be. But most foreign stock markets aren't directly tethered to the Fed.
Most of the money banks "have" they created it themselves (it's called Fractional Reserve Lending and there's a wonderful paper on it by somebody at the Bank Of England called "Money creation in the Modern Economy").
The whole "banks lend out depositors' money" thing hasn't been true since the 80s.
Also nowadays most of the money in leveraged investments comes from the Money Markets (so rich people and pension funds) rather than banks.
That said, your point still stands since a reduction of deposits might impact banks' reserves (basically central banks force them to have the equivalent of about 3-5% of their loans as reserves), it would force a wider retrenchment of their loans, but by itself the impact of that on the entire leveraged investment universe should be limited because they're not the main players in the Money Markets.
At this point, it's not even that. That's just a blip in the 1000-times leveraged surreal casino economy.
Japanese people are overworked and I'm worried for their health. It's good when they get a break from the economy.
Nice call, I checked it and it is already above the levels of the Ukraine war. It's a COVID-level or 2008-level event already.
https://finance.yahoo.com/quote/%5EVIX/
I think volatility is just a name used for variance of a basket of commodities, stocks, bonds that reflects an added price due to risk/uncertainty.
Usually war is a way to stop a recession/depression since its so profitable.
The economy has been fucked far longer than the current conflicts that might actually start ww3
Sounds like the oligarch commandments.
It's like Hyperneoliberalism:
"Nothing bad ever truly happens, guilt is subjective, nothing is real, everything is allowed, but if you take anything from me, it is the worst possible crime in all of history."
In a stagflation scenario war is great for business. Otherwise you have no business at all.
Isn't WW2 the only example of this in practice? (and then only where the war did not reach, like the US or pre-1940 nazi germany)
Ya it’s a pretty good example since WW2 was a stagflation scenario. It’s exactly the same scenario we are headed into. There’s a lot of similar polarities. Some may even argue that the next world war will break out precisely because of stagflation.
As we descend further and further into economic depression (we’ve been in a recession for years) you’ll see the gears of war begin to spool up.
One would think we'd have learned to fix this inevitability by now...or is it intentional, to "fix the stagflation"?
The economy squeezes the proles for every penny they have, inflating the money faster than wages to ensure only the rich can afford to maintain.
Once the proles have been squeezed dry, have a major conflict and help save the failing banks and restore a "golden era" for a time.
Then do it all over again by starting to squeeze the masses.
Part of the problem is getting everyone on board. Economic prosperity is a great way to justify keeping a government in charge. Major economic downturns usually cause a change of government and unrest with the government in general. Without a good economy as justification to keep a government in power, many governments turn to "defense" as a reason to stay in power.
Usually war is a way to stop a recession/depression since its so profitable.
When you're selling into a war market, you can make a lot of money. When you're in that war market you tend to lose a lot of your expensive durable capital very quickly, which can get very expensive.
Girl, have you been following THIS WEEK'S news? Like right now is unlike any other time.
War is historically used to pillage other people when times are rough. It doesn't stop a recession; it doubles it and gives it to their opponent.
Stop was a strong word, ill agree. But it is a tool in the arsenal of TPTB when shit turns downward because the economic scam that it is modern capitalism eventually unravels
Oh hey look a bunch of sheep - human and electronic - are reacting self destructively for no good reason. Must be any day ending with a 'y.'
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