The Global Stock Market Crash JUST HAPPENED. And Its Much Worse Than We Could've Imaginedl 8-5-3024 - 68,243 views Aug 5, 2024 Jack Chapple - This is what happened in the Japanese stock market today. This is what happened in the Taiwanese stock market today. This is what happened in the british stock market today. And this is what happened in the american stock market today. - All around the world, stock markets took a tumble. And almost every single big stock took a big dip today. Except for one… - You see, one stock shot up so high today, that it might be signaling to the rest of the world, that something really really bad is about to happen… - FAIR USE FOR EDUCATIONAL PURPOSES - Mirrored From: https://www.youtube.com/@JackChappleShow - But lets start off with where this stock market collapse began, and that is japan. You see, Japans stock market didnt just have a bad day today, but it had its worst day in almost 40 years. In fact, it crashed worse today than at any time during the pandemic. The only other time it was worse was black monday in 1987. An infamous day when the world lost trillions of dollars in the stock market in just a few hours. - But why did this happen, well there are a few hypotheses. One is something called a carry trade. You see, Japan over the last few years actually has kept their interest rates low and have experienced very little inflation. And so, what a lot of very big corporations and wall street firms have been doing is borrowing tons of money in japanese yen with low interest rates, and then taking that money and investing it in other currencies and stock of other countries like in australia and the usa who have higher interest rates. - Pretty much meaning these large investment firms borrowed cheap money in japan, and have been using that debt to invest in the united states. And its estimated that between 5 and 10% of the entire american stock market is on a carry trade. But, what happens when that cheap money in japan, has there interest rates go up. You see, japan has not raised their interest rates since 2007. Meaning they have been a safe bet to borrow cheap money for nearly 2 decades. But in March, Japan raised its interest rates for the first time. And they did so again just 5 days ago. Meaning that now all of the wall streets firms and financial institutions that have been relying on japans cheap borrowing cost, now are worried that their payments will go up on their debt, or that they will no longer have access to cheap money for future investments into the stock market. - And on person who may have actually seen this coming is the renowned investor, warren buffet. A man who has been known for outperforming the stock market for about 70 years, decided to cash out pretty much immediately after hearing this news out of japan. Now this could have beena coincidence, because he has been cashing out slowly over the last 12 months. But 4 days ago, he nearly doubled his cash position, meaning that he expec