The rise of a great power: starting with military industry

Chapter 665: Carnival of Capital (Update, please give me a monthly ticket)

When China entered infrastructure construction mania mode.

A capital feast remotely directed by Liu Tao has officially begun.

Short Nikkei stock index futures.

Japan's stock and property markets are booming. The price-to-earnings ratios of Japanese listed companies are now over 100 times, and some even have a price-to-earnings ratio of over 200 times.

Everyone knows that the Tokyo stock market bubble is high and the risks are extremely high. Both the United States and Japan believe that the Tokyo stock market will plummet.

Since the year before last, some institutions have been trying to short the Nikkei stock index.

However, the Nikkei index continued to hit new highs, and everyone's predictions were ruthlessly shattered one by one, and those who shorted Nikkei stock index futures had already been liquidated.

Some economists in Japan and around the world have published articles saying that traditional economic theories are not applicable to Japan and that Japan is creating new economic laws.

Huge amounts of funds used to short Nikkei stock index futures were harvested by bulls one after another. Many investors and institutions suffered liquidation and heavy losses. News of people jumping off buildings continued to appear in the media. Major futures sales departments reminded investors to pay attention to investment risks and required investors to pay a 20% margin regardless of whether they were long or short Nikkei stock index futures.

Japanese automobiles dominate the world, and the electrical, electronic and integrated circuit industries are flourishing all over the world. The GDP growth rate is very high. The appreciation of the yen has not been able to reduce Japan's trade surplus, and the Japanese people are full of confidence.

The previous 'Black Monday' caused the Nikkei index to fall sharply, but the Nikkei index was also the first among the major stock markets to recover.

The Nikkei index has been showing a strong upward trend with large rises and small falls, trading volume has continued to increase, and long funds have entered the market enthusiastically.

This is a game between bulls and bears!
From Japan's perspective, the Japanese economy is now thriving, the stock market and the property market are booming, and the US stick has not worked. Toshiba went bankrupt, but there are many companies like Toshiba in Japan. Japan's GDP exceeds that of the United States, Germany, France and the United Kingdom, and its GDP share in the world continues to hit new highs, second only to the United States. Its overseas investment is more than 200 billion US dollars, ranking first in the world.

The reason why Liu Tao entered the market on a large scale at this time was because Wall Street in the United States also entered the market at this time.

Obviously, the bubble has grown big enough, and Wall Street is about to start harvesting it. If Wall Street is harvesting, he will naturally follow suit.

Sure enough, not long after, facing the soaring stock and real estate markets, the Bank of Japan issued a warning signal, raised bank interest rates for the first time, and adopted a tight monetary policy.

But Japanese companies and citizens are so intoxicated that they continue to invest in the stock and property markets.

Japanese securities investment institutions have predicted that the Nikkei index will break through 1990 or even points in , setting a new historical record.

But Liu Tao knew that this was destined to be a dream!

The lost decade, the lost twenty years, the lost thirty years, and the lost forty years have officially begun!
He had no idea of ​​the daily ups and downs of the Japanese stock market, but that didn't matter.

The general trend is unstoppable, so all you need to do is short the Nikkei stock index.

Since the Plaza Accord, the Japanese yen has entered a fast appreciation lane, and the Japanese seem to have gone crazy. They no longer use funds to improve technology, update equipment, and cultivate workers' skills, but instead invest money in the stock market and real estate market. Japanese businessmen go all over the world to buy, as if they want to buy the whole world. They are extremely generous.

Japanese women are addicted to buying luxury goods. They purchase 70% of the LV handbags on the market, large quantities of high-end cosmetics, large amounts of diamond jewelry, gold jewelry, and brand-name clothes.

Japan's dance halls and bars are packed with people and open all night long. Business is booming and the Japanese are immersed in it.

Even the biggest bulls in the Japanese stock market are Japanese conglomerates and Japanese individuals. They made a fortune and believed that they had defeated Wall Street and that Japan was invincible.

Japan's stock and property markets will continue to rise forever!

But they didn't know that the Americans had already raised the sickle to cut the leeks of the Japanese, and at the same time another sharp sickle had already entered the scene.

The two main forces attracted a large amount of international hot money to enter the market and short Japan.

From the very beginning, the bulls and bears engaged in a fierce fight, with both sides engaging in close combat and neither giving in.

This fight lasted for two weeks.

Finally, the bulls could no longer hold on. The Nikkei index fell by 1.2%, which may not seem like a big drop, but in fact, the Nikkei index has already fallen, and the general trend has been determined!
In just one week, the Nikkei index fell by ten percent!
Japanese economic experts believe that this has reached the bottom and the Japanese stock market will rebound.

But in fact, this is undoubtedly too optimistic.

In the new week, the Nikkei index fell another ten percent!

The Nikkei Stock Average fell from its peak of 41000 points to 33210 points, a drop of 7790 points, or 19%, in two weeks.

The drop was so large that it exceeded the previous "Black Monday".

It’s just that the ‘Black Monday’ at that time was a plunge of 4400 points in two days, a drop of 17%, which was fierce!

And now it’s falling continuously!

There seems to be no sign of bottoming out!

Some people choose to cut their losses and leave the market, stopping losses in time.

However, more Japanese financial groups and Japanese people have lost their temper and choose to continue to fight back, and are looking forward to the government's rescue.

However, the Japanese government, which was highly expected, did not rescue the market, but continued to send out warning signals, raising interest rates again and tightening funds.

It’s not that the Japanese government doesn’t want to rescue the market, but that it dares not to rescue the market!

The U.S. Seventh Aircraft Carrier Group is cruising in Tokyo Bay, and friendly activities are being carried out at U.S. military bases in Japan.

How can this save the market?

There is no way to save the market!

I am afraid that if we rescue the market now, something earth-shattering will happen.

Under such circumstances, short sellers were celebrating, long sellers were liquidated, the entire Japanese stock market continued to fall, and countless people went bankrupt and jumped off buildings.

In Tokyo, people jump from the top of tall buildings every day.

I don’t know how many people choose to end their lives in this way.

Under such circumstances, Japanese women no longer dared to spend lavishly on luxury goods; Japanese men also became obedient and no longer went to the red-light district every day.

There are countless people who choose to get drunk every day and numb themselves with alcohol.

In five weeks, the index fell from 41000 points to 24210 points, a drop of 16790 points, or 41%!

The Japanese stock market bubble has burst!

Stock market crash!

A real stock market crash!
This is equivalent to 41% of the Japanese wealth evaporating in just over a month!

This is not the previous battle between bulls and bears, where there was a back-and-forth fight, but a stock market crash!
The short sellers were reveling in celebration, plundering the Japanese wealth.

This means that in just less than two months, the Japanese lost 272.14 trillion yen in wealth. According to the current exchange rate between the yen and the US dollar, this is equivalent to 2.367 trillion US dollars evaporating in less than two months!

And looking at the current situation, I'm afraid the Japanese stock market has not yet hit bottom.

This is the tragedy of the Japanese people, and countless Japanese are wailing.

But this is a carnival of international hot money. As the saying goes, if you don't open for three years, you can make enough money for three years after you open. This means that at this time, this is a feast of capital. Everyone is dividing the flesh of Japan like a carnival, eating the flesh of the Japanese, drinking the blood of the Japanese, and having a big meal!
　There are still 1000 tickets left to reach 350 monthly tickets! If you have monthly tickets, please help vote!
　　
　
(End of this chapter)