Is the Everything Bubble bursting and is another Great Depression looming?
6 days, 3 hours ago

Is the Everything Bubble bursting and is another Great Depression looming?

New Indian Express  

But right now, the correction phase is unusually prolonged and intense, with markets looking like a lava lamp. Next, it could be fears of an economic downturn driving a stock market sell-off or changes including federal workforce cuts or the DOGE clampdown on spending that's dampening market sentiment. According to Ventura, a key concern for the stock market is that if the US GDP growth rate falls below the Federal Reserve's interest rates, it could lead to a debt spiral. The Fed faces a policy dilemma -- cutting rates could reignite inflation, while raising rates would escalate the interest burden on the national debt, making fiscal sustainability more challenging," it observed. In fact, Japan experienced a similar predicament in 1972, when the Bank of Japan's interest rates and inflation outpaced GDP growth.

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History of this topic

Wall Street slips, breaking an 8-day winning streak for stocks
7 months ago

Wall Street slips, breaking an 8-day winning streak for stocks

LA Times  

Pedestrians pass the New York Stock Exchange. It is one of Wall Street’s most influential stocks because a frenzy around artificial intelligence technology has made it one of the U.S. stock market’s most valuable companies at roughly $3 trillion. Expectations aren’t that high this time around, with nearly everyone already in agreement the Fed will begin cutting interest rates next …

The obscure Japanese investing scheme that continues to threaten global markets
7 months, 2 weeks ago

The obscure Japanese investing scheme that continues to threaten global markets

The Telegraph  

With share prices plunging, high anxiety on Wall Street and talk of emergency rate cuts in the US, it has been a dramatic week for the markets – and the millions of savers who rely on them for an investment return. The result has left anyone from ordinary people dabbling in investing to large pension funds feeling sore and looking …

Japan Stock market crash: Nikkei 225 index plunges 12.4% as world markets tremble over risks to the US economy
7 months, 2 weeks ago

Japan Stock market crash: Nikkei 225 index plunges 12.4% as world markets tremble over risks to the US economy

The Hindu  

Japan’s benchmark stock index plunged 12.4% on August 5, compounding a global market rout set off by investor concerns that the the U.S. economy could be headed for recession. But after Friday’s jobs report, worries are rising the Fed may have kept its main interest rate at a two-decade high for too long, raising risks of a recession in the …

Stock market today: Asian markets sink, with Japan’s Nikkei down 3.5%, as Mideast tensions flare
11 months ago

Stock market today: Asian markets sink, with Japan’s Nikkei down 3.5%, as Mideast tensions flare

Associated Press  

HONG KONG — Asian stocks tumbled Friday, with Japan’s Nikkei slumping 3.5% on heavy selling of semiconductor-related shares and other market heavyweights. Japan’s headline inflation rate in March slowed to 2.7%, while the core-core index, excluding fresh food and energy costs, moderated to 2.9%, marking the first time since November 2022 that the index fell below 3%. Markets are waiting …

In Japan, interest rate increases herald a new era for financial markets
1 year ago

In Japan, interest rate increases herald a new era for financial markets

The Hindu  

Barely weeks after Japanese stocks broke three-decade highs, the country’s financial markets are hurtling toward another phenomenon not seen for the best part of a generation: rising interest rates. “I personally think this is going to be the beginning of a new era,” said Keita Matsumoto, head of financial institutions sales and solutions at Citigroup Global Markets Japan. “Markets still …

Why global financial markets are walking a tightrope
1 year, 5 months ago

Why global financial markets are walking a tightrope

ABC  

If the past few months are anything to go by, the era of dependable double digit super returns may be drawing to a close. Longer term, they have upended trading patterns and drawn the curtain on almost three decades of global trade liberalisation, ushering in a new Cold War that's threatening to turn hot. That's left money managers dazed and …

Japan’s economy rebounds from COVID, growing 2.2 percent in Q2
2 years, 7 months ago

Japan’s economy rebounds from COVID, growing 2.2 percent in Q2

Al Jazeera  

Growth driven by rise in private consumption following the lifting of pandemic curbs in March. Japan’s economy grew an annualised 2.2 percent in the second quarter, as robust private consumption provided a boost to the country’s long-delayed recovery from the COVID-19 pandemic. The growth was driven largely by a 1.1 percent rise in private consumption, which accounts for more than …

Japan’s economy rebounds in Q4, growing annualised 5.4 percent
3 years, 1 month ago

Japan’s economy rebounds in Q4, growing annualised 5.4 percent

Al Jazeera  

Outlook for sustained recovery clouded by rising raw material costs and spike in Omicron infections. Japan’s economy rebounded in the final three months of 2021 as falling coronavirus cases helped prop up consumption, though rising raw material costs and a spike in Omicron variant infections cloud the outlook. The world’s third-largest economy expanded an annualised 5.4 percent in October-December after …

Japan’s economy shrank more than expected on surging virus
3 years, 10 months ago

Japan’s economy shrank more than expected on surging virus

Al Jazeera  

Decline was on the back of a hit in private consumption as a state of emergency to curb the virus kept people at home. Japan’s economy shrank more than expected in the first quarter as a slow vaccine rollout and new COVID-19 infections hit consumer spending, raising fears of the country heading towards a double-dip recession. “Consumption will probably remain …

Japan’s economy performed better than expected in last quarter
4 years, 1 month ago

Japan’s economy performed better than expected in last quarter

Al Jazeera  

But the recovery is slowing and economists expect Japan’s economy to shrink again this quarter due to a second state of emergency to control the spread of the coronavirus. The world’s third-largest economy grew by an annualised 12.7 percent in October-December compared with the previous three months, government data showed on Monday, marking the second-straight quarter of expansion and exceeding …

A look back at a year that rocked markets and the global economy
4 years, 2 months ago

A look back at a year that rocked markets and the global economy

ABC  

The health crisis caused by COVID-19 was a once-in-a-century event, and so too was the economic fallout. The Prime Minister says the JobKeeper payment brings the Government's total economic support to $320 billion, or 16.4 per cent of GDP. "The Government was not going to bail out five large foreign shareholders with deep pockets, who, together, own 90 per cent …

Japan’s economy shrinks at record rate, slammed by pandemic
4 years, 7 months ago

Japan’s economy shrinks at record rate, slammed by pandemic

Associated Press  

TOKYO — Japan’s economy shrank at annual rate of 27.8% in April-June, the worst contraction on record, as the coronavirus pandemic slammed consumption and trade, according to government data released Monday. The Cabinet Office reported that Japan’s preliminary seasonally adjusted real gross domestic product, or GDP, the sum of a nation’s goods and services, fell 7.8% quarter on quarter. The …

Coronavirus impact: Japan's record economic plunge wipes out Abe era gains
4 years, 7 months ago

Coronavirus impact: Japan's record economic plunge wipes out Abe era gains

India Today  

Japan was hit by its biggest economic slump on record in the second quarter as the coronavirus pandemic emptied shopping malls and crushed demand for cars and other exports, bolstering the case for bolder policy action to prevent a deeper recession. The third straight quarter of declines knocked the size of real gross domestic product to decade-low levels, wiping out …

Japan’s economy shrinks at record pace amid coronavirus pandemic
4 years, 7 months ago

Japan’s economy shrinks at record pace amid coronavirus pandemic

Al Jazeera  

Stocks fall as the world’s third-largest economy shrank an annualised 27.8 percent in April-June – a record decline. Japan was hit by its biggest economic contraction on record in the second quarter as the coronavirus pandemic crushed consumption and exports, keeping policymakers under pressure for bolder action to prevent a deeper recession. The third straight quarter of declines knocked the …

India risks ‘Japanification’ as NPAs surge: Ex-RBI deputy governor Acharya
4 years, 7 months ago

India risks ‘Japanification’ as NPAs surge: Ex-RBI deputy governor Acharya

Live Mint  

India is witnessing the return of a worrying trend of greater tolerance for loose lending and provisioning practices, which risks putting it on the same path that took Japan to the “lost decade” in the 1990s, former central banker Viral Acharya said. “Certainty with the Covid shock, and as highlighted in the RBI’s financial stability report, the bad loans are …

After the Virus: Japan’s Painful Economic Recovery
4 years, 8 months ago

After the Virus: Japan’s Painful Economic Recovery

The Diplomat  

Japan’s 2020 Olympic dreams are gone, the economy is in recession, and the COVID-19 pandemic has tragically caused nearly 1,000 deaths and counting in the country. Amid growing international pressure, including threats of athlete boycotts, the International Olympic Committee announced on March 24 that the Games would be pushed back to “not later than summer 2021” to “safeguard the health …

Japan just fell into recession, and much worse could be on the way
4 years, 10 months ago

Japan just fell into recession, and much worse could be on the way

CNN  

Hong Kong/Tokyo CNN Business — Japan’s economy has entered recession, and the coronavirus pandemic will likely make things even worse. Japan’s economy was already struggling before the outbreak: Economic activity contracted late last year as the country absorbed a sales tax hike and grappled with the aftermath of Typhoon Hagibis, a powerful storm that hit the country last fall. “The …

‘Severe impact’: Bank of Japan warns of worsening funding strains
4 years, 11 months ago

‘Severe impact’: Bank of Japan warns of worsening funding strains

Al Jazeera  

Japan’s central bank head said the pandemic is hurting the country’s exports, output, tourism and consumption. Uncertainty over Japan’s economic outlook is “extremely high” as the coronavirus pandemic hits output and consumption, central bank Governor Haruhiko Kuroda said, stressing his readiness to take additional monetary steps to prevent a deep recession. While aggressive central bank actions across the globe have …

Japan calls coronavirus pandemic ‘biggest crisis’ since world war
4 years, 11 months ago

Japan calls coronavirus pandemic ‘biggest crisis’ since world war

Al Jazeera  

Japanese Prime Minister Shinzo Abe’s government is to pledge to take “all steps” encompassing fiscal, monetary and tax policies to battle the deepening fallout from the coronavirus in a stimulus package to be approved on Tuesday, a draft document reviewed by Reuters news agency showed. Abe has pledged to craft an “unprecedented” stimulus package to respond to the global downturn …

Economic fallout from pandemic continues in Asia
4 years, 11 months ago

Economic fallout from pandemic continues in Asia

Deccan Chronicle  

TOKYO: Asian shares were mixed on Wednesday, on continuing worries about the economic fallout from the pandemic as reports of coronavirus cases keep surging in various regions. The S&P 500 dropped a final 1.6%, bringing its loss for the first three months of the year to 20% as predictions for the looming recession caused by the coronavirus outbreak got even …

Global markets sink despite Fed’s promise of unlimited support for the economy
5 years ago

Global markets sink despite Fed’s promise of unlimited support for the economy

CNN  

New York/Hong Kong/London CNN Business — US stocks opened lower Monday andEuropean markets stayed stuck in reverse even after the US Federal Reserve committed itself to creating an unlimited amount of money to prevent the world’s largest economy from plunging into a deep recession. “Aggressive efforts must be taken across the public and private sectors to limit the losses to …

Coronavirus jolts global stock markets
5 years ago

Coronavirus jolts global stock markets

Deccan Chronicle  

LONDON: The coronavirus panic is jolting stock markets, with steep drops in major indexes grabbing the public’s attention. This sudden flight to safety is causing havoc in markets for bonds, currency and loans to a degree that hasn’t been seen since the financial crisis of a dozen years ago. Francesco Papadia, who oversaw the European Central Bank’s market operations during …

Here’s what could really sink the global economy: $19 trillion in risky corporate debt
5 years ago

Here’s what could really sink the global economy: $19 trillion in risky corporate debt

CNN  

London CNN Business — Companies have spent the years since the global financial crisis binging on debt. “This certainly is another match being lit the bonfire of corporate debt liabilities,” said Simon MacAdam, global economist at Capital Economics. “There’s definitely potential for systemic risk.” The coronavirus shock Investors became increasingly anxious about corporate debt this week as stocks sold off …

Global wipeout: Asian stocks deepen fall over virus panic
5 years ago

Global wipeout: Asian stocks deepen fall over virus panic

Al Jazeera  

Japan’s Nikkei tumbles 10 percent with other Asian stock markets not far behind as investors worry over economic hit. ‘Fight or flight’ “It’s one of those situations where there is so much uncertainty that no one quite knows how to respond … if it’s fight or flight, many people are choosing flight at the moment.” The plunge, as the coronavirus …

Japan's economy shrinks faster than estimated as coronavirus compounds recession risk
5 years ago

Japan's economy shrinks faster than estimated as coronavirus compounds recession risk

India Today  

Japan's economy shrank more than initially estimated in the fourth quarter - by the most since the 2014 sales tax hike - exacerbating fears for economic prospects at a time when the impact of the coronavirus outbreak is increasing recession risk. A spike in the yen and drop in Tokyo stocks - against a backdrop of oil price cuts that …

Global economy faces worst crisis since 2009 over coronavirus
5 years ago

Global economy faces worst crisis since 2009 over coronavirus

CNN  

London CNN Business — The coronavirus is plunging the world economy into its worst downturn since the global financial crisis, according to the Organization for Economic Cooperation and Development, which warned Monday that growth could be cut in half if the outbreak continues to spread. Bank of Japan Governor Haruhiko Kuroda promised Monday that the country’s central bank would provide …

Coronavirus shook the foundations of a global stock market powered by debt
5 years ago

Coronavirus shook the foundations of a global stock market powered by debt

ABC  

The news over the weekend was nothing short of grim. While western governments are sheeting home the blame for last week's market carnage on the virus, a much more sinister and barely concealed problem lurks at the heart of our financial system. Last October the International Monetary Fund warned that up to $US19 trillion of corporate debt could be "at …

Global stocks fall as central bank reassurances fail to ease virus fears
5 years ago

Global stocks fall as central bank reassurances fail to ease virus fears

CNN  

New York / Hong Kong CNN Business — US stock futures and markets in Europe fell Monday despite reassurances from the world’s central banks that they stand ready to help limit the economic and financial damage caused by the novel coronavirus outbreak. The losses follow a brief respite for stocks in Asia, which rebounded after Bank of Japan Governor Haruhiko …

Coronavirus contagion spawns climate of panic on share markets
5 years ago

Coronavirus contagion spawns climate of panic on share markets

ABC  

It's the word the world's top health authorities dare not utter. The coronavirus COVID-19, once contained in China's industrial heartland, has now spread to Europe and the Middle East, spawning a climate of panic that threatens to undermine not just financial markets, but the global economy. With so much debt issued at record-low interest rates, it has become almost impossible …

Japan’s economy is shrinking and a recession looks ‘all but inevitable’
5 years, 1 month ago

Japan’s economy is shrinking and a recession looks ‘all but inevitable’

CNN  

Hong Kong CNN Business — Japan’s economy is flirting with recession, and the novel coronavirus could push it over the edge. Carnell, of ING, wrote Monday that the coronavirus will likely weigh on consumer spending this quarter, contributing to the likelihood that Japan’s economy enters recession. The Japanese GDP figures published Monday kicked off a slew of troubling economic data …

Asia stocks slump on recession fears after Dow suffers worst day of year; US bond yields plunge
5 years, 7 months ago

Asia stocks slump on recession fears after Dow suffers worst day of year; US bond yields plunge

Firstpost  

The intensifying US-China trade war shows no signs of resolution and the flight to bonds signal the growing fears of a global recession Hong Kong: Asian markets sank Thursday after the Dow suffered its worst day of the year as fears of a global recession mounted with investors fleeing equities. The losses followed a dark day on European bourses and …

Bank of Japan now holds assets that are bigger than the country’s entire economy
6 years, 4 months ago

Bank of Japan now holds assets that are bigger than the country’s entire economy

CNN  

Hong Kong CNN Business — An epic bond-buying spree by Japan’s central bank means it’s now sitting on assets worth more than the country’s entire economy. Data released by the Bank of Japan on Tuesday show that its total holdings stand at 553.6 trillion yen following years of money printing aimed at jump starting the country’s stagnant economy. The years …

Global stocks fall as BoJ fizzle takes steam out of July rally
8 years, 7 months ago

Global stocks fall as BoJ fizzle takes steam out of July rally

Live Mint  

London/Singapore/Bangkok: Emerging-market stocks trimmed their biggest year-to-date rally since 2009 as the Bank of Japan’s limited stimulus highlighted the hurdles faced by policy makers in supporting economic growth. Underwhelming BoJ measures and the Federal Reserve’s statement this week rekindling potential for a rate increase in 2016 have tempered investor optimism that central banks will extend looser monetary policies. Investors poured …

China’s stock market meltdown
9 years, 8 months ago

China’s stock market meltdown

Al Jazeera  

Andrew Kenningham, a senior global economist at Capital Economics, discusses China’s stock market crash. Every individual investor has to take responsibility for their own actions and a lot of people perhaps got their fingers burnt who would have otherwise been wiser to not get involved. by Andrew Kenningham, Senior global economist China could be heading towards the biggest financial disaster …

Bank of Japan keeps record easing as Kuroda aims to sustain recovery
10 years, 6 months ago

Bank of Japan keeps record easing as Kuroda aims to sustain recovery

Live Mint  

Tokyo: The Bank of Japan maintained record stimulus to keep stoking inflation and boost economic momentum that’s been sapped by a higher sales tax. Kuroda said on 22 August there is no need to change his view on the outlook for the economy and that the central bank stands ready to adjust policy if needed to keep inflation on track …

Asian stocks tumble on U.S. debt downgrade fears
13 years, 7 months ago

Asian stocks tumble on U.S. debt downgrade fears

The Hindu  

Asian equity markets were sharply down early on Tuesday as investors fearing a possible global economic slowdown continued to flee stocks. Japan’s Nikkei 225 index plunged 4.8 percent to 8,662.30 in the morning session, while Hong Kong’s Hang Seng index plummeted 18,981.55. There are fears that it’s starting to stall and if that’s the case, the whole global growth scenario …

Global fears of another bubble
15 years, 4 months ago

Global fears of another bubble

The Hindu  

When on the eve of President Obama’s visit to China, that country’s banking regulator, Liu Mingkang, criticised the US Federal Reserve for fuelling global speculation by adopting a loose money policy, it was dismissed as just another public display of difference. But when soon thereafter, Germany’s new Finance Minister Wolfgang Schauble also criticised the Fed’s role in fuelling the “dollar …

Stocks Rise As Plan To Handle Bank Debts Is Aired
16 years, 6 months ago

Stocks Rise As Plan To Handle Bank Debts Is Aired

NPR  

Stocks Rise As Plan To Handle Bank Debts Is Aired Stocks rallied at the end of the day Thursday as investors piled into the market on reports that Treasury Secretary Henry Paulson is considering setting up a credit facility that would resemble the Resolution Trust Corp. that helped end the savings and loan crisis. Then, earlier this week, the Federal …

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