Everybody’s screaming “AI bubble!” “Nvidia failed!” “Crypto panic!” like that’s the whole story… but that’s not what’s really shaking this market, fam.
In this video, I break down why this sell-off is NOT about an AI bubble, NOT about Nvidia missing, and NOT just about Bitcoin bleeding – it’s about global liquidity tightening in real time and a money game that 95% of investors don’t even track.
If you’ve been confused like:
“How did Nvidia CRUSH earnings and the market STILL fall apart?”
…this is the episode that’s going to give you that “ohhhh, THAT’S what’s going on” moment.
I’m walking you through the yen carry trade, why cheap Japanese money has been fueling U.S. stocks, crypto, and risk assets for decades… and how one move in Japan’s bond market forced investors all over theworld to dump assets at the same damn time.
By the end of this video, you’re going to see the market completely different.
You’ll stop blaming the wrong things… and start watching the right levers.
💡 What I Break Down In This Video
🚫 Why this is NOT an AI bubble – and why Nvidia actually did its job
🧨 How one Fed comment flipped the vibe from “Nvidia, please save us” to “full-blown panic”
📉 Nvidia adding $450B in market cap… then losing it and closing red
🧊 Crypto sliding deeper into a bear market overnight
🏚️ Real estate defaults, Rich Carlton partners folding, and why that wasn’t the real trigger
Then we get into the real villain behind the move:
💴 The Japanese yen carry trade explained in plain English
Borrow cheap from Japan, flip it into U.S. stocks, bonds, real estate, crypto, emerging markets
Pay Japan back with pennies and keep the spread
🌏 Why 7–10 TRILLION dollars is tied to the yen – and what happens when the yen gets stronger
🧯 What investors do when the yen spikes:
Liquidate everything: stocks, crypto, real estate, risk assets
Run for liquidity so they can unwind those yen loans
📰 The headlines they gave you vs what was really going on
“Japan yield shock threatens global markets”
“Bitcoin may be next”
SoftBank dumping a $5.8B Nvidia stake – not because they hate AI, but because Japan is under pressure and they need cash
Then I tie it all together:
📊 Yen charts vs SPY and the U.S. market – you literally see them move together
🧵 How this same yen drama showed up before in 2024 and triggered another sell-off
🧠 Why money is tied together and nothing is a coincidence
🧭 What this means for YOUR 401k, retirement, and AI/crypto positions going forward
👀 What to watch now:
The yen
Fed rate cut odds
Volatility every time global liquidity gets squeezed
I’m still breaking down the S&P 500 (SPY), the Nasdaq, and two stocks I’m watching, so you don’t just get the macro story – you get the game plan.
Join our Exclusive Patreon!!!
https://hubs.ly/Q03thsJt0%F0%9F%92%8E%F0%9F%92%8E%F0%9F%92%B8%F0%9F%92%B8
Join Trappers Anonymous: https://hubs.ly/Q03thxbW0
Disclaimer
Education only. Not financial advice. Do your own research and manage risk.
⏱️ CHAPTERS
00:00 – This Is NOT an AI Bubble (Real Reason Markets Are Shaking)
01:11 – Trap Door Week: Nvidia Earnings, J. Powell & Instant Panic
03:30 – The Invisible Force: Global Liquidity Tightening
03:37 – Intro to the Yen Carry Trade (Explained Without Wall Street Jargon)
04:35 – How Cheap Japanese Money Fueled U.S. Stocks, Crypto & Real Estate
05:21 – “Japan Yield Shock” & SoftBank’s $5.8B Nvidia Sale
06:10 – Why a Stronger Yen Forces Global Investors to Dump Assets
08:03 – Japan’s Debt, Rising Yields & The 250% of GDP Problem
09:02 – Yen Charts vs SPY: Watching Them Move Together
12:01 – Flashback: 2024 Carry Trade Unwind & 5% Yields
14:57 – Why Everything Fell Apart at the Same Damn Time
15:55 – What to Watch Next: Yen, Rate Cuts & Market Volatility
17:30 – How I’m Thinking About SPY, the Nasdaq & Stocks Going Forward
18:01 – Final Message: This Isn’t an AI Bubble… It’s Global Liquidity Tightening
source
@emb777
A perfect explanation Mr. Howard! I was not expecting that Japan to increase interest rates… I have been shorting GBPJPY for a few weeks now and the spike torn me up, the spreads too!
@Raheemohe
I have 15k ready to invest but not very experienced. How do I get started?
@jayten1377
Free Game!
@abacouli
You are good bro
@Jay-x7i7p
💎 jewels my guy 💯
@OzDABoss974
You finally found my secret….good for you trapper
@SCMESD
Very informative
@TwizzMofo
Thank you for recommending Michelle Lisa German on one of your videos.
I reached out to her and investing with her has been amazing. I paid off my $529k 15 years loan in 8 months. Now totally debt free 2 paid off rentals. Love having no debt for the last 5 months. Thank you Michelle German
@SomoshiphopRadio
KICK THE BOTS OUT HOMIE! (in the comments!)
@LucindaTerra
When i lost almost everything, it felt like the end. But every time payouts come from mevolaxy, i realize – its not the end, dat a new start.
@ervin1jp
Excellent analysis. And movin' forward, we also gotta pay attention to japan's defense spending vs. yen weakness over time, cuz at the end of the day, a weaker yen'll increase exports which in turn'll help finance defense spendin'…(IMHO).
Gotta luv that Trapper.
@ahan.analytics
I have heard the Japanese yen carry trade unwind story before, but this situation is different. The yen is currently weakening, not strengthening. Rap is showing bond yields going up; that rise is not the same thing as the yen getting stronger. Japan is actually suffering an economic fate worse than the carry trade unwind: its bond yields are going up at the same time the currency persistently sells off. USD/JPY was around 147 October 1 and is now around 157. This combination represents a troubling lack of confidence in the Japanese economy and thus Japan is rumored to be talking about intervening in currency markets to strengthen the yen. THAT strength will be unwelcome for carry traders and perhaps they are trying to unwind ahead of such intervention. It is hard to really know….. All the other factors add together to hit sentiment. I think the contagion is real from the entire list of negatives talked about in this video.
@TiburcioVidal
Good luck to everyone shorting bitcoin again. Il go check my income from mevstake, at least there everything goes by plan
@nelly520
Great video
@paulettemayo794
What should we do Trapp?
@EduardoCastanhoo
Its not far‑fetched to imagine that in a years products, like mevstake could sit at the heart of fund portfolios furnishing diversification.
@504StockCop
Fire breakdown
@seanblackwell5150
Hey Trap I want to know what keeps Japan from raising their intrest rates high enough to collapse everything? The higher they raise the more profit they take correct? What keeps Japan from U.S. level interest increases?
@dapperdan52
Very eye opening Trap. Appreciate you!
@investnmuscle509
This is some real game !🔥 🔥 🔥
@smokenojoke8182
Great vid I’ll make sure to include this when forecasting.
@daynawalker4542
I love your channel…you break down the information very simply
@QuirkeeBunny
What does “*” apply to? 🤷🏻♀️
@mikestevens3506
Holy dead internet theory batman! I can't tell what comments are even real people on here
@UKSignals
trap blessing us with blessings even though he don't have to he could do it in the group
@coylissfountano7554
I learn more and more from you with every video. Thanks Trap!!
@conniecroom3319
I Appreciate you Trap
@MistyBlueJudah
🤯im learning so much , this one though almost make my brain hurt so its growing😁
@Specialcot77
I Love this New Classroom Section Professor Trapper 📊📚📊
@kruxsony
anyone else catch the whoppty doo adlib 😂
@MercedesSalvador-h5r
Im buying the nvidia at $170
@traceyl9959
When you borrow money, don't you do that at a set interest rate? I'm not understanding Trapp. Why would Japan's increasing interest rate effect someone who already borrowed the money prior to a rising interest rate? Please clarify.
@giantskings
👍
@F1spiderrr
This is probably the best narrative that he has ever broke on this channel. Appreciate the free game. This was a 💎 gem.
@diplive7
Excellent analysis thank you, very well explained 🫡🫡🫡
@SamsonRobert-e5m
I'm retired at 47, went from Grace to Grace. This video here reminds me of my transformation from a nobody to good home, honest wife and 35k biweekly and a good daughter full of love❤️
@SalsaBoiiii
💯💯💯💯 great video trap. Love to see more videos of how the macroeconomic effects the US stock exchange.
@mamoako1521
6:09 The Cycle
@youknowexactlywhothisis5710
Unc what are your research sources??
@kccutsz247
This guy never disappoints with his information 🔥🔥
@marvaw29
Brooooo!!! Mic Drop🎤🎤🎤🎙🎙🎙Spitting gems and truth!🔥🔥❤🔥❤🔥
@solonepeon5805
The market crashed because the rich want money for the holidays to have fun & cheat on their wives. That's all they think about 😂. Don't worry let them have fun because next year markets will be up once taxes are over.
@StockMarketCoach-un2hr
Education is Key. I'm currently reading a great book that will expand on this topic and includes step by step guide on how to navigate brokerage account and chart platform. Anyone looking to gain more knowledge and be prepared to invest successfully, I encourage you to read this book.
"Money Grows on Trees: Stock Market 101"