Headline is a bit disingenuous as it is the most points (because the total points is higher) but only the second highest percentage (1987 still 1st).
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.
Do we know where the sales mostly came from?
Random speculation: Could be banks needing to pull out of the market due to the Fed signaling September rate cuts due to the higher-than-expected unemployment report. This will cause a drop in yield for savings, which would cause people to reduce what they have in those accounts.
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.
Directly? No. Heavily? Absolutely.
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?!
Line go down 🐻
At this point, it's not even that. That's just a blip in the 1000-times leveraged surreal casino economy.
Buy low guys!
When they sell low, we buy high :D
This, but unironically.
Can we just stop with the stock bullshit. I want this economy to die so much.
People are freaked about WW3 breaking out
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
It is only profitable for a few in some places. War is not net good for "business"
Ferrengi rule of acquisition 34. The best rule 34.
Sounds like the oligarch commandments.
It's like Hyperneoliberalism:
"Nothing bad ever truly happens, guilt is subjective, nothing is real, everything is allowed, but if you take anything from me, it is the worst possible crime in all of history."
In a stagflation scenario war is great for business. Otherwise you have no business at all.
Isn't WW2 the only example of this in practice? (and then only where the war did not reach, like the US or pre-1940 nazi germany)
Ya it’s a pretty good example since WW2 was a stagflation scenario. It’s exactly the same scenario we are headed into. There’s a lot of similar polarities. Some may even argue that the next world war will break out precisely because of stagflation.
As we descend further and further into economic depression (we’ve been in a recession for years) you’ll see the gears of war begin to spool up.
One would think we'd have learned to fix this inevitability by now...or is it intentional, to "fix the stagflation"?
The economy squeezes the proles for every penny they have, inflating the money faster than wages to ensure only the rich can afford to maintain.
Once the proles have been squeezed dry, have a major conflict and help save the failing banks and restore a "golden era" for a time.
Then do it all over again by starting to squeeze the masses.
Part of the problem is getting everyone on board. Economic prosperity is a great way to justify keeping a government in charge. Major economic downturns usually cause a change of government and unrest with the government in general. Without a good economy as justification to keep a government in power, many governments turn to "defense" as a reason to stay in power.
Usually war is a way to stop a recession/depression since its so profitable.
When you're selling into a war market, you can make a lot of money. When you're in that war market you tend to lose a lot of your expensive durable capital very quickly, which can get very expensive.
Girl, have you been following THIS WEEK'S news? Like right now is unlike any other time.
War is historically used to pillage other people when times are rough. It doesn't stop a recession; it doubles it and gives it to their opponent.
Stop was a strong word, ill agree. But it is a tool in the arsenal of TPTB when shit turns downward because the economic scam that it is modern capitalism eventually unravels
"currency carry trade" was something that came up in a lot of discussions I saw.
Japanese people are overworked and I'm worried for their health. It's good when they get a break from the economy.
Nikkei Asian Review - News Source Context (Click to view Full Report)
Information for Nikkei Asian Review:
MBFC: Right-Center - Credibility: High - Factual Reporting: High - Japan
Wikipedia about this source
Media Bias Fact Check | bot supportSearch topics on Ground.News
https://asia.nikkei.com/cms/Business/Markets/Equities/Japan-stocks-dive-4-451-points-more-than-Black-Monday-in-1987
I wish I knew how the VIX worked, that shit is going to be up so much today.
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/%5EVIX/
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.
A community for discussing events around the World
Rule 1: posts have the following requirements:
Rule 2: Do not copy the entire article into your post. The key points in 1-2 paragraphs is allowed (even encouraged!), but large segments of articles posted in the body will result in the post being removed. If you have to stop and think "Is this fair use?", it probably isn't. Archive links, especially the ones created on link submission, are absolutely allowed but those that avoid paywalls are not.
Rule 3: Opinions articles, or Articles based on misinformation/propaganda may be removed. Sources that have a Low or Very Low factual reporting rating or MBFC Credibility Rating may be removed.
Rule 4: Posts or comments that are homophobic, transphobic, racist, sexist, anti-religious, or ableist will be removed. “Ironic” prejudice is just prejudiced.
Posts and comments must abide by the lemmy.world terms of service UPDATED AS OF 10/19
Rule 5: Keep it civil. It's OK to say the subject of an article is behaving like a (pejorative, pejorative). It's NOT OK to say another USER is (pejorative). Strong language is fine, just not directed at other members. Engage in good-faith and with respect! This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban.
Similarly, if you see posts along these lines, do not engage. Report them, block them, and live a happier life than they do. We see too many slapfights that boil down to "Mom! He's bugging me!" and "I'm not touching you!" Going forward, slapfights will result in removed comments and temp bans to cool off.
Rule 6: Memes, spam, other low effort posting, reposts, misinformation, advocating violence, off-topic, trolling, offensive, regarding the moderators or meta in content may be removed at any time.
Rule 7: We didn't USED to need a rule about how many posts one could make in a day, then someone posted NINETEEN articles in a single day. Not comments, FULL ARTICLES. If you're posting more than say, 10 or so, consider going outside and touching grass. We reserve the right to limit over-posting so a single user does not dominate the front page.
We ask that the users report any comment or post that violate the rules, to use critical thinking when reading, posting or commenting. Users that post off-topic spam, advocate violence, have multiple comments or posts removed, weaponize reports or violate the code of conduct will be banned.
All posts and comments will be reviewed on a case-by-case basis. This means that some content that violates the rules may be allowed, while other content that does not violate the rules may be removed. The moderators retain the right to remove any content and ban users.
News !news@lemmy.world
Politics !politics@lemmy.world
World Politics !globalpolitics@lemmy.world
For Firefox users, there is media bias / propaganda / fact check plugin.
https://addons.mozilla.org/en-US/firefox/addon/media-bias-fact-check/