MARKET UPDATE: FED Backstops The Yen, Metals Rip, And Neoclouds Rebound
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You know what's freaking me out about this market is the fact that it feels like the shitcoin traders have left crypto, pivoted to the stock market, and now the stock market trades kind of like crypto used to.
Good morning, Jonah.
Morning, Good afternoon.
Afternoon for me. How's it going? How are we looking?
We're looking good, Avi. You know, I was just reviewing the title that Brad put beneath us here, market update, Fed backstops the yen. You heard it here first. The dollar yen is a fantastic leading indicator for US treasuries because treasuries, interestingly enough, the largest holder of US treasuries used to be China, they're letting those roll off because they hate America and America hates China, but the new that used to be number two, the new number one holder of US treasuries to the best of my knowledge is Japan, offshore holder of course. So and then there's a carry trade obviously. So
Yeah, I find it hard to grasp why Scott Bessen, of all people, is deciding to intervene in a currency market, because he should know more than anybody else that interventions very rarely work. I mean, that was the whole premise behind him betting against the yen and making a fortune, and the whole premise behind him betting against the pound with Soros and breaking, quote, unquote, breaking the Bank of England is that interventions can't stop market forces. It's very rare for that to be the case. Sometimes, every now and then, there's a case where traders are sort of asleep at the wheel and th
just thought Yeah. You've you've put the question to me. Sadly, despite racking my brain, like I do, Brad prepped us that this would be the title of of the episode. I I just don't know. This is one of those things where I'm I'm left scratching my head. I do not know why we would intervene in a foreign currency. I've never seen that happen before. Interest rates in currency markets kind of break my brain. I find myself more aligned with commodities thinking where there's like an underlying molecule or barrel that you can kind of like attach your thinking to? Like I have such a better understand
I think I think my my answer actually goes in line with what you said at the beginning. And basically, the Japan is committed to defending the yen. Japan doesn't want the yen the yen to go crazy. Crazy. You said at the beginning, who's the largest holder of US treasuries? Japan. Doesn't So what does The US not want? The US does not want Japan dumping treasuries, forcing the rates up and then hurting hurting the markets. And so the the I think Besant has made the calculation that the yen showing a little bit of strength is going to hurt the carry trade less or hurt the carry trade unwinding wil
Oh, no, fam. We lagging.
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