this video aged like milk

Enter the Sweepstakes for FREE using my link https://ridge.com/money. No purchase necessary to enter or win. Sponsored by Ridge.

-----

Sign up for our FREE newsletter! - https://www.compoundeddaily.com/

George Soros books
The Alchemy of Finance - https://www.amazon.com/Alchemy-Finance-George-Soros/dp/0471445495

Lecture Series - https://www.youtube.com/watch?v=RHSEEJDKJho

Books we recommend - https://howmoneyworkslibrary.com/

-----

My Other Channel: @HowHistoryWorks

Edited By: Svibe Multimedia Studio

Music Courtesy of: Epidemic Sound

Select Footage Courtesy of: Getty Images

📩 Business Inquiries ➡️ sponsors@worksmedia.group

Sign up for our newsletter https://compoundeddaily.com 👈

All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.

#finance #blackmonday #stockmarket

-----

On Monday the 6th of August the S&P 500 opened down almost three and a half percent with the Nasdaq down FOUR percent and other global markets down by significantly more than that. [put up the google 5d graphs for S&P 500, NASDAQ, ASX 200, Euro N

Markets like the Nikkie 225 are down over TWELVE percent, and Taiwan’s main stock Index having its worst day in HISTORY.

This followed a weekly trend that has seen TRILLIONS of dollars wiped off markets around the world and fingers being pointed at Japan, the Fed, greedy wall street traders or really whoever else people want to blame when things go wrong.

And then just to prove that nobody fully understands what is going on… just one day later markets across the world rallied almost covering the losses from what people are now calling the new “Black Monday”.

Since you should expect a lot of YouTube thumbnails with red graphs, laser eyes and (so so many) flames in your immediate future now is probably a good time to ask… what is happening to the stock market… right now?

Japan’s economy has been stagnant for more than three decades now, and the Japanese Government along with its central bank has been trying to change that by keeping interest rates extremely low, even going NEGATIVE between January 2016 and January 2024.

It was hoped that these low rates would encourage local borrowing boosting the domestic economy but when that never happened the Bank of Japan almost became stuck offering these low interest rates because any increase would further slow down an already sluggish market.

It might not have done much for Japan, but investors took advantage of these low interest rates by borrowing money in Japanese Yen and then either investing in Japan, or more often exchanging Japanese Yen for another currency like the US Dollar and investing in asset markets here in America.

Since stonks only ever go up investors could make money on the spread between the low Japanese interest rates and the higher returns they could get in the market.

dropping in value relative to the USD so investors could make EXTRA money on the foreign exchange exposure if they didn’t hedge against it.

Like all good things, this worked well until it didn’t…

Follow to learn How Money Works.

Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorks

Disclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.

-

Learn more about your ad choices. Visit megaphone.fm/adchoices

A Doubter's Guide to the Bible - Series Close with John Dickson