Yen Carry-Trades unwinding rapidly, global asset-prices collapse

[GOD IS MY DOG]

It is determined by finacial activities and Agreed-Upon Price backed by many complex hedging and official papers

those Jewish controlled commercial banks and hedge funds are doing majority of the trading on the FX market...........these Jewish banks are shareholders of the Federal Reserve..............that's why the US money supply increased don't know how many times after the Subprime Crisis and yet USD became stronger...........

 

[k1976]

those Jewish controlled commercial banks and hedge funds are doing majority of the trading on the FX market...........these Jewish banks are shareholders of the Federal Reserve..............that's why the US money supply increased don't know how many times after the Subprime Crisis and yet USD became stronger...........

U see How Oracle Run Road, u know already...he buddha heart, still let us know few hours beforehand

 

[k1976]

those Jewish controlled commercial banks and hedge funds are doing majority of the trading on the FX market...........these Jewish banks are shareholders of the Federal Reserve..............that's why the US money supply increased don't know how many times after the Subprime Crisis and yet USD became stronger...........

Because Unspoken Fact is...
Gold is money, everything else is CREDIT

Only Credit can give u Interest Rate - that explain self inflationary nature of modern money system. Many just dun understand

 

[k1976]

 

[Willamshakespear]

The problem with gold is that one can't eat it, or have industrial equipment at home to cut gold bars into smaller pieces to trade it for food.

Worse still, should one keep gold bars at home, it is only open invitation to be robbed. Not only that, should one attempt to trade gold bars for food, sellers would know you are desperate & would even demand your entire horde of gold for just a cup of water - water or your life?

Most buy gold by gold certificates, which then can be traded in exchange for cash - thus paper money is still the best.

However, in such uncertain times, which currency is best, which is acknowledged & accepted Worldwide?

Although it was reported that $6.4Trillion had been wiped off the market, the fact is - Money DO NOT DISAPPEAR into thin air. Stocks sold were exchanged for cash that will be returned to banks as savings or safety, or hidden at home under pillows which is dangerous.

Thus banks Worldwide are stuffed with money, & interests would have to be paid out. Banks make money from loans & investments. Volatile as the markets are, banks cannot afford to hold on to such sums & expect to offer interest to savers, therefore, banks will have to invest in secure blue chip stocks for returns, & lower savings rates......

The only ones who got burnt were those who panic & those who invested in penny stocks such as cryptos, ETF, etc, of which holds no value for survival except for gambling.

 

[k1976]

 

[k1976]

The problem with gold is that one can't eat it, or have industrial equipment at home to cut gold bars into smaller pieces to trade it for food.

Worse still, should one keep gold bars at home, it is only open invitation to be robbed. Not only that, should one attempt to trade gold bars for food, sellers would know you are desperate & would even demand your entire horde of gold for just a cup of water - water or your life?

Most buy gold by gold certificates, which then can be traded in exchange for cash - thus paper money is still the best.

However, in such uncertain times, which currency is best, which is acknowledged & accepted Worldwide?

Although it was reported that $6.4Trillion had been wiped off the market, the fact is - Money DO NOT DISAPPEAR into thin air. Stocks sold were exchanged for cash that will be returned to banks as savings or safety, or hidden at home under pillows which is dangerous.

Thus banks Worldwide are stuffed with money, & interests would have to be paid out. Banks make money from loans & investments. Volatile as the markets are, banks cannot afford to hold on to such sums & expect to offer interest to savers, therefore, banks will have to invest in secure blue chip stocks for returns, & lower savings rates......

The only ones who got burnt were those who panic & those who invested in penny stocks such as cryptos, ETF, etc, of which holds no value for survival except for gambling.

Yeah pet rock is a barbrarian relic

 

[shock888]

The economic fundamentals of Japan are not strong.

It is homogenous society facing rapidly rising aging population. The costs of healthcare are high, are born by the few remaining young, which in turn needs higher salaries to sustain, along with higher govt tax regimes to biz entities, to keep revenues streaming for its high costs of social expenditures...

There is a price for being 'exclusive' & unless it opens its doors to immigration or foreign labor, to boost up economic strengths as the Japanese are a hardworking & intelligent ethnic group, demise as a Japanese civilization is on the cards....

It needs not fear immigration so long as it learns the lesson of Europe. During the wars that plagued the Middle East, Europe open its doors & welcomed immigrants out of compassion but a CRITICAL MISTAKE it made was NOT to prohibit those immigrants from bringing along their cultures that FAILED their own nation, & thus the quagmire Europeans face today.

Every NEW immigrant to Japan MUST adopt the Japanese culture & way of life, give up their past, & pledge total allegiance to the democratic nation of Japan. Thus such measures, along with the Japanese work attitudes, perhaps one day USD/JPY will reverse back & beyond under 100.....

Things are not looking good for JP. Negative population rates and more people moving to live in cities. Rice fields are left empty etc.

 

[Flying Horse]

The world is funded by interest-free yen.
When yen appreciates strongly, it costs more to repay.

Nikkei take largest dive since Black Monday of 1987
https://asia.nikkei.com/Business/Ma...-take-largest-dive-since-Black-Monday-of-1987

This is the picture of a loaded catapult pulled very hard and then release. The group who control the catapult decide how far the chart should go. Nothing is random.

 

[k1976]

Things are not looking good for JP. Negative population rates and more people moving to live in cities. Rice fields are left empty etc.

Their world lumber 2 will he officially leeplace by Tiongkok...both nippon and tiongkok also have alot similarities if u know where to look

 

[k1976]

The problem with gold is that one can't eat it, or have industrial equipment at home to cut gold bars into smaller pieces to trade it for food.

Worse still, should one keep gold bars at home, it is only open invitation to be robbed. Not only that, should one attempt to trade gold bars for food, sellers would know you are desperate & would even demand your entire horde of gold for just a cup of water - water or your life?

Most buy gold by gold certificates, which then can be traded in exchange for cash - thus paper money is still the best.

However, in such uncertain times, which currency is best, which is acknowledged & accepted Worldwide?

Although it was reported that $6.4Trillion had been wiped off the market, the fact is - Money DO NOT DISAPPEAR into thin air. Stocks sold were exchanged for cash that will be returned to banks as savings or safety, or hidden at home under pillows which is dangerous.

Thus banks Worldwide are stuffed with money, & interests would have to be paid out. Banks make money from loans & investments. Volatile as the markets are, banks cannot afford to hold on to such sums & expect to offer interest to savers, therefore, banks will have to invest in secure blue chip stocks for returns, & lower savings rates......

The only ones who got burnt were those who panic & those who invested in penny stocks such as cryptos, ETF, etc, of which holds no value for survival except for gambling.

The money is just like Bank Credit Card leeward points...they are actually tagged to Swap Contracts and other sophiscated hedging instruments underwriting alot global macro trade agreements between sovereigns and other big organization.

U are spot-on money dun disappear into thin air. Just like the US QEs...money can be created and parked in Central Banks pr other G-SIBs financial institutions..$$$ is there , but they are just not for open market circulations

 

[k1976]

A ‘Textbook Turnaround Tuesday’ Doesn’t Mean Meltdown Is Over​

• ‘Things are so dramatically oversold,’ Spectra’s Donnelly Says
• Tuesday’s bounce may not prove durable: Vantage Point Asset

By Richard Henderson
August 6, 2024 at 2:27 PM GMT+8
Updated on
August 6, 2024 at 4:51 PM GMT+8
Save

It’s an old cliché but the phenomenon known as Turnaround Tuesday — when markets rebound from a selloff at the start of the week — is an opportunity that shows up time and again in the data. The bad news is such recoveries don’t guarantee a bottom has been reached.

Investor psychology during a rout tends to begin with jitters on Thursday, hedging on Friday and all-out selling on Monday, according to Brent Donnelly, veteran trader and president of trading analysis firm Spectra Markets. By Tuesday, the downdraft is primed for a reversal, he wrote in a note published Monday.

 

[knowwhatyouwantinlife]

Not too sure what's the concern here...buy low sell high just like putting the ball in the basket or scoring a goal...as long as you don't follow a certain sovereign fund, plenty of money to be made

 

[k1976]

China

Evergrande Liquidators Want Billions From Founder Hui Ka Yan​

August 6, 2024

Liquidators are seeking to recover about $6 billion from founder Hui Ka Yan, his former spouse Ding Yumei, two former executives and others, the group said on Monday​

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Liquidators are seeking to recover large sums of money from Evergrande founder Hui Ka Yan, his former spouse and top executives, the group has revealed. File photo: Reuters (2016).

China Evergrande Group said on Monday that company liquidators are seeking to recover billions of dollars from founder Hui Ka Yan, his former wife and former top executives.
The group said the liquidators are seeking to recover about $6 billion from seven defendants – Hui, his former spouse Ding Yumei, two former executives and others – and they have obtained injunctions against three of them.
With more than $300 billion of liabilities, the world’s most indebted property developer was ordered by the Hong Kong High Court to liquidate in January after it failed to offer a concrete restructuring plan for its $23 billion in offshore debt.

ALSO SEE: Nikkei Shoots Back up as Officials Scramble to Calm Markets​

In a filing, the liquidators said they had started legal proceedings in late March against seven defendants, who also include former CEO Xia Haijun and former chief financial officer Pan Darong, as well as founder Hui’s former spouse Ding Yumei, and three entities associated with Hui and Ding.
The liquidators said they had obtained injunctions restraining Hui, Ding and Xia from dealing with, disposing of, or diminishing the value of their worldwide assets up to various prescribed limits.
Confidentiality orders on the injunctions and the proceedings were lifted by the court on August 2.
“The proceedings are ongoing and there is no certainty as to whether or not they will be successful and as to the amount that may ultimately be recovered by the company,” joint liquidators Edward Middleton and Tiffany Wong from Alvarez and Marsal said.
The liquidators aim to recover dividends and remuneration totalling $6 billion that Evergrande paid to the seven defendants on the basis of allegedly misstated financial statements for each of the financial years from 2017 to 2020.
The China Securities Regulatory Commission earlier this year found that Evergrande’s onshore flagship unit Hengda Real Estate had overstated revenue by 564 billion yuan ($78 billion) over two years through 2020.

 

[Dr Christopher Cheok C S]

This is the picture of a loaded catapult pulled very hard and then release. The group who control the catapult decide how far the chart should go. Nothing is random.

well-said.

 

[Dr Christopher Cheok C S]

The Japanese Yen Carry Trade unwinding is only 50% complete, warns JP Morgan.​

 

[Dr Christopher Cheok C S]

A 0.25% rate hike triggered a -27% Nikkei decline, $6.4 trillion global stock losses.​

 

[k1976]

 

[k1976]

Unwind of massive yen-funded carry has room to go, analysts say​

Previous

FILE PHOTO: A man stands next to an electronic stock quotation board inside a building in Tokyo, Japan August 2, 2024. REUTERS/Issei Kato/File Photo

People take pictures on an overpass with a display of stock information in front of buildings in the Lujiazui financial district in Shanghai, China August 6, 2024. REUTERS/Nicoco Chan/ File Photo

FILE PHOTO: A man stands next to an electronic stock quotation board inside a building in Tokyo, Japan August 2, 2024. REUTERS/Issei Kato/File Photo

People take pictures on an overpass with a display of stock information in front of buildings in the Lujiazui financial district in Shanghai, China August 6, 2024. REUTERS/Nicoco Chan/ File Photo

FILE PHOTO: A man stands next to an electronic stock quotation board inside a building in Tokyo, Japan August 2, 2024. REUTERS/Issei Kato/File Photo
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06 Aug 2024 09:39PM (Updated: 07 Aug 2024 02:27AM)
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NEW YORK : An epic unwinding of the yen-funded carry trade that has reverberated through global markets may have further to go, analysts said on Tuesday.
Days of havoc in global markets have analysts rushing to calculate the size of a global carry trade in which investors have borrowed money from economies with low interest rates, such as Japan or Switzerland, to fund investments in higher-yielding assets elsewhere.
The strategy, which kept money flowing into global risk assets for years, was shaken after the Bank of Japan raised interest rates last week, forcing some investors to abandon the trade as the yen surged higher. The resulting unwind sparked huge losses in global stock markets and saw Japan’s Nikkei notch its worst day since 1987.

"I’d guess the carry trade is only about 50 per cent unwound,” wrote James Malcolm, a UBS Japan macro strategist based in London, in a Tuesday note to clients.

Malcolm estimates the dollar-yen carry trade grew to at least $500 billion at its peak. He calculated that some $200 billion of the carry trade has been unwound over the last two to three weeks.

“How much the carry trade could unwind depends not so much on the level of the interest rate differential but the change in the interest rate differential,” he said. Comparing the current move with the carry trade unwind of 1998 suggests more unwinds could be ahead, he said.

 

[k1976]

What the 'Carry Trade' Had to Do With Monday's Stock Market Rout​

By
Colin Laidley

Published August 06, 2024

02:01 PM EDT

Tomohiro Ohsumi / Getty Images

Key Takeaways​

• The yen carry trade, a popular investment strategy that exploits the gap between low Japanese interest rates and high rates elsewhere, may be one key factor in recent market volatility.
• A more aggressive Bank of Japan and soft U.S. economic data have threatened to narrow the gap between Japanese and U.S. interest rates, prompting an unwinding of the trade.
• Analysts say the future of the carry trade largely depends on the trajectory of the U.S. economy and the magnitude of any response by the Federal Reserve.

U.S. stocks tumbled yesterday amid a global equities selloff led by Japanese stocks, which had their worst day since 1987.

One key contributor to the rout: The unwinding of the yen carry trade.

What Is a Carry Trade?​

A carry trade is an investment strategy that involves borrowing the currency of a territory where interest rates are low and investing it in a place where interest rates are high.

The Japanese yen has been a favorite currency to borrow among carry traders in recent years due to historically low interest rates. Japan has struggled with deflation and sluggish growth for decades. As such, the Bank of Japan (BOJ) has held interest rates incredibly low far longer than any of its global peers. Japan only abandoned negative interest rates in March when other major central banks were pondering rate cuts.

The carry trade’s success is dependent on a few different factors. First, it relies on interest rates on the borrowed currency remaining low. And it relies on stable markets. And recent developments in the U.S. and Japan shook both carry trade buffers.