The Great Unwind
occupywallst.com
February 4, 2026
21 min read
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63/100
Summary
Wall Street is experiencing instability due to the unwinding of the Japanese Yen carry trade. Cryptocurrencies have lost 40% of their value, and silver has dropped 40%, a decline not seen since 1980.
Key Takeaways
- Wall Street is experiencing turmoil due to the unwinding of the Japanese Yen carry trade, which has led to significant asset liquidation.
- The Bank of Japan's Zero Interest Rate Policy (ZIRP) and Negative Interest Rate Policy (NIRP) previously allowed investors to borrow Yen cheaply and invest in higher-yielding assets globally.
- Recent market volatility has resulted in cryptocurrencies and silver losing 40% of their value, while stocks like Microsoft have seen 15% drops despite positive earnings reports.
- The Japanese Yen is the most shorted currency globally, and as shorts begin to cover, its value increases, exacerbating market instability.
Community Sentiment
Concerns
- The narrative presented in the article oversimplifies complex financial dynamics, attributing all recent volatility to a single event, which is misleading.
- Claims about gold and silver being historically uncorrelated are blatantly false, indicating a lack of rigorous analysis in the article.
- The author's bias against the financial establishment undermines the credibility of the arguments made in the article.
