Japan Just Flipped, The Rest Of The World Is Next…

Japan was the epicenter for a wave of liquidations in smashing financial markets all over the world. It had all the telltale signs of a collateral and margin call. This wasn’t about Japanese banks or even Japan, rather the sudden realization over the US soft landing narrative going up in smoke triggered a monster repricing and revaluation. So, what does all that mean?

Eurodollar University’s Money & Macro Analysis

CNBC Japan’s Nikkei logs worst day since 1987 Black Monday crash
https://www.cnbc.com/2024/08/05/asia-markets.html

The Economist Why Japanese markets have plummeted
https://www.economist.com/finance-and-economics/2024/08/05/why-japanese-markets-have-plummeted

Bloomberg Jolt in Credit Fear Gauges Pushes Company Borrowers to Sidelines
https://www.bloomberg.com/news/articles/2024-08-05/asia-high-grade-dollar-bond-spreads-widen-the-most-in-22-months

Bloomberg Wall Street Hit by Fears Economy in ‘Danger Zone’: Markets Wrap
https://www.bloomberg.com/news/articles/2024-08-05/japanese-stocks-tumble-leading-equities-selloff-markets-wrap?itm_source=record&itm_campaign=Global_Stocks_Selloff&itm_content=%27Mad_Rush%27_for_Treasuries-3

CNBC Dow drops 900 points, Nasdaq craters 3% in global market rout: Live updates
https://www.cnbc.com/2024/08/04/stock-market-today-live-updates.html

Deutsche Bank What impact is “higher for longer” having on the CLO market in 2024?
https://flow.db.com/trust-and-agency-services/what-impact-is-higher-for-longer-having-on-the-clo-market-in-2024

https://www.eurodollar.university
Twitter: https://twitter.com/JeffSnider_EDU

42 Comments

  1. The US economy IS just fine. This is a correction because the markets are overvalued. Investors should have been hedging into cash before now. Think like Warren Buffett. Get some cash and wait for buying opportunities.

  2. Japans demise been seen coming for quite sometime, they even did some shenanigans earlier this year something.
    If you were looking and listening to those in the industry who mentioned about japan, then what happened to japan was most certainly not a surprises. Now the fallout from this and in the region and as it ripples world wide, well we will see about that in due course.

    As for the us economy, up and down in the financial world, start of 2022 what is the USA federal reserve waiting for to adjust interest rates.
    And then as month after month passed, the question was still being asked utimateley ensuring this outcome.
    Almost like it was perfectly planned.
    Now its at the point if interest rates are cut Inflation will explode even higher.
    But if rates arent cut the economy will tank and recession
    There is no way out and no soft landing and it was done, seemingly with perfect precision to ensure this outcome.

    Now the Federal Reserve of the USA will do the same stupid things it does every time!
    But seemingly it expects different outcomes, delusional.
    At least it expects the people and investors to believe it, for as long as possible, till the realties are overwhelmingly obvious.
    Aka crash market correction.

    Moreover lets not forget the bigger picture, its better conditions for the "Tokens" if everything is Zeroed out and instigated, as the ideal scenario for a world currency based on tokens is where elites are trying to take us all for ultimate control over our lives. Disguised as easier better and safer yada yada bs.

    Look after yourselves, in every shape way and form.

  3. Looks like it’s time to Buy! Last I checked you buy fear and sell greed… lots of fear for the last 3 years with Jeff… now he can finally say he was right for a week… massive liquidity coming, buy 🚀

  4. They learned nothing from 2008. A "CLO" is the exact same thing as a "CDO" that caused the housing crash in 2008, this time it's mostly corporate real estate. However, they're still loaded with junk bonds and then the junk fails, the whole CLO fails. Since absolutely no one went to prison for what they did in 08, they simply started the next scam

  5. Central Banks cannot save anyone, as banks create nothing.
    People have been suffering for years as they do produce but they are now empty, yes you can keep raising prices on goods people must purchase but a lot of people are now reaching their max credit limits.
    Soon people will not be able to repay their debts, so from where will productivity come?
    Banks can only shuffle money around or print money.
    That leaves war. War is total destruction, look at Gaza, do you really want a situation where bits of paper you printed enmass are just blowing in the wind?
    Buy all the gold you want you cannot eat gold.
    So in the end the only thing that matters is food and farmers have been raped for decades.

    All the silly words economists use , bear bull spike spread weakening reprice macroeconomic yields delinquency are just meaningless weasel words that cover up the fact economists actually know nothing.

  6. My Lord, who art in heaven. Hallowed be thy name, thy kingdom come. Thy will done on earth as it is done in heaven. Give us this day, our daily Bread and forgive us our trespasses. As we forgive those who trespass against us. And lead us not into temptation, but deliver us from Evil. In Jesus' name. For thine is the Kingdom, the Power, and the Glory, forever and forever.

    Blessed art thou, King of the Universe.

  7. NOTHING's resolved. Other data yesterday showed PMI's and other indicators bounced higher, even jobs. He should have addressed those indicators but didn't so his analysis is incomplete and suspect. Could easily be just a short blip but that takes off any continuing market crash or bigger/emergency rate cut. Still way too early to call any recession or major one. This is going to drag on for at least 6 months and Wall Street just looking for any excuse to buy will probably start edging higher again especially when the inevitable 78%-79% of companies beats on earnings and a heavy earnings week(s) ahead. Notice how EVERY earnings season the beats are magically in the same range, 77-79%.

  8. is this out of stupidity or greed or what? personally i see planning. a march toward an implementation of global tyranny. the people that believed in "soft landing" also it seems believed in "safe and effective" better start asking what the plan is before its too late.

  9. So your voice opens and i hate it, then this transatlantic rhythm begins flowing and suddenly you go from Professor Frink to Cary Grant in about two paragraphs. Your voice is a trainwreck that results into statuesque beauty.

  10. The continuously changing economic conditions in our society have made it necessary for people to find additional sources of income, thus I am looking at the stock market to fuel my retirement goal of $3m, my only concern is the recent market crash.