More explanation on this week's bloodbath: BOJ increase in interest rate and rising yen detonates world markets

It is more fun criticizing

The BOJ decision to increase interest rate and rising yen has hammered the carry trade.   And it is no longer wise to hold on to carry trade.    Thus hedge funds and other money funds are disgorging their carry holdings to stave off losses.   The two events are causing the carry trade to be unprofitable.  

Is this revenge for the nuke bombing of its two cities vs USA and the world (no basis)

We just wonder how this event would:

1.  Affect Japanese yen loans to the Philippines;

2.  Budgeted/approved yen loans to Philippine projects

Global stock market just crashed

There is greater uncertainty with USA because of huge debt.   Its a $36 trillion now.  And USA adds $1 trillion every 100 days.  The idea now is not to pay the debt and just keep on printing more money.   But all will come crashing soon.

Questions:

1.  How is this crisis going to affect our relatives living in USA?

2.  How is this going to affect local banks and businesses.?

All ready local stock markets are down?  How about local banks?  Will this crisis affect remittances and our OFWs

Perfect storm for a global recession - just the beginning

It is more fun criticizing

$1.3 trillion evaporating world wide.  Nikkei has lost trillions ahead. 

Triggered by:    negative news on US economy.   Move by Bank of Japan to increase % rates. (which has kept Yen artificially law)  resulting in yen carry trade.   

Carry trade is unwinding and margin calls are no longer profitable.  

This is worrisome

So with:    car repos up by 23% in 2024,  banks have more problem loans,  commercial loans that can default in a year or two,  increase in public debt by $100 billion in three days.  US debt is now $36 trillion

Who what is responsible for this bloodbath?

Is Philippines to tainted with this bloodbath