The Recession/Financial Crisis is Here!

Message to Bulls who gaslighted us about a soft landing:

Monday’s global market sell-off was the worst for stocks since 2022, with the Dow tumbling 1,000 points. $3.8 trillion was wiped from the stock and crypto markets within the last week. Stocks have an overreliance on the magnificent 7, tech stocks, and AI, and now the AI bubble is bursting.

Recessionary data crashed the markets and the Fed’s hesitancy to cut rates also spooked the markets. Since Donald Trump is perceived as better for markets, Kamala Harris leading in the polls and election odds betting is bad for markets. Hence this crash has been dubbed the “Kamala Crash”, though I don’t think Trump can save the economy either. Iran announcing that it will attack Israel is a major factor as well for economic volatility.

Japan’s financial markets are imploding with the Nikkei crashing 12% in just one day. Monday was Japan’s worst crash since the 1987 Black Monday Crash. Japan’s crisis is especially concerning, as Japan is the largest holder of US treasuries and now Japan will probably have to dump US Treasury Bonds. Fed Chair Powell had previously intervened so Japan would not dump US bonds but that won’t work this time. US speculators have been borrowing from the Yen at low Japanese interest rates, and then converting Yen to dollars to invest back into US markets. So basically, Japan was propping up US markets and will now trigger America’s financial crash.