The BOJ - which as we noted last week "changed the rules" again - has unleashed a financial apocalypse by creating a positive feedback loop that culminates with a deflationary collapse of all assets (as the bank now goalseeks a surge in the yen and thus deflation and economic devastation) which has led to not only to the Nikkei promptly entering a bear market from its all time high hit just 3 weeks ago and wiping out all of its year to day gains, not to mention collapsing 15% since last week's BOJ meeting
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98 sats \ 2 replies \ @TheBTCManual 5 Aug
Can someone ELI5 what's going down in Japan?
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22 sats \ 1 reply \ @vSats 5 Aug
Bank of Japan (BoJ) increased the Japan interest rates from 0% (has been that way for decades) to 0.25%. They did this because their currency keeps getting cheaper.
This makes people who borrowed money realized now they have to pay more, no more free money. The money they borrowed was used, among others, into investments; namely Japan Bonds, Japan Stocks. Even the US borrowed from Japan through US Bonds.
Now the people who borrowed started to sell the bonds, the stocks, in order to pay back the loans. This brings the price down.
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0 sats \ 0 replies \ @TheBTCManual 5 Aug
Thanks, I appreciate your effort to edifyi me :)
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85 sats \ 5 replies \ @Satosora 5 Aug
Ouch.
They are trying things that arent working.
Messing with things arent really helping.
Maybe they should take a step back and see where things go, instead?
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41 sats \ 3 replies \ @siggy47 OP 5 Aug
If they step back now it will look like a panic move, and will just make things worse. The US needs to move first.
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64 sats \ 2 replies \ @Satosora 5 Aug
Isnt Japan having problems because of how much the USA is printing their own money and treasuries?
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41 sats \ 1 reply \ @siggy47 OP 5 Aug
Japan just raised interest rates after over 30 years of rates near zero. It was a dramatic (crazy?) move in the face of recessionary signs.
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21 sats \ 0 replies \ @Satosora 5 Aug
I see.
Japans economy has been struggling for a while now.
People arent interested in spending more than they need.
Japan is a pretty thrifty society.
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0 sats \ 0 replies \ @freebookspls 5 Aug
It's safe to say politicians would prefer to delay the problem to the next administration rather than eat shit and do the right thing
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43 sats \ 0 replies \ @Bell_curve 5 Aug
#635716
Taiwan crashes
Robinhood halts 24 hour trading
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0 sats \ 0 replies \ @IamSINGLE 5 Aug
Aren't they trying to repair a junk machine without changing the damaged parts?
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