Cpt. Charisma on Nostr: The unwinding of the Yen carry trade was a harbinger of the 2007 crisis. It caused a ...
The unwinding of the Yen carry trade was a harbinger of the 2007 crisis. It caused a significant stock market draw down and was followed by falling home prices and ultimately almost took out the U.S. banking system.
Today, the Yen carry trade began unwinding. We have also seen falling stock prices this week. Commercial real estate was already in the toilet, but I don't know wheter home prices will follow this time. This year has also seen bank failures and near failures due to commercial real estate and bond prices. If things play out like last time, we could see a massive financial crisis and bailouts within the next year. Keep an eye on credit markets, LIBOR, SOFR, repo markets, etc. Oh, and make sure you have some Bitcoin :)
Today, the Yen carry trade began unwinding. We have also seen falling stock prices this week. Commercial real estate was already in the toilet, but I don't know wheter home prices will follow this time. This year has also seen bank failures and near failures due to commercial real estate and bond prices. If things play out like last time, we could see a massive financial crisis and bailouts within the next year. Keep an eye on credit markets, LIBOR, SOFR, repo markets, etc. Oh, and make sure you have some Bitcoin :)