Japan stocks dive 4,451 points, more than Black Monday in 1987

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.

Robinhood killed 24 hour trading. Dip is apparently being bought now that premarket is open. Very sketchy tho.

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.

Probably a Pentium based TI 85 calculator program thing.

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.

Line go down 🐻

When they sell low, we buy high :D

This, but unironically.

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/^VIX/

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

"currency carry trade" was something that came up in a lot of discussions I saw.