⚠️ WARNING
Every global crash starts with South Korea.
It sounds ridiculous.
Until you look at the history.
1997:
- The Korean won collapsed
- KOSPI crashed
- Foreign exchange reserves nearly ran out
- Then the Asian Financial Crisis spread across the world
2000:
- South Korean semiconductor stocks topped first
- Months later, Nasdaq dumped 78%
- The Dot Com Bubble popped
2008:
- Korean stocks started breaking down
- Just over a month later, Lehman Brothers collapsed
- The global financial system went with it
2021:
- Bill Hwang used extreme leverage through Archegos
- The fund exploded
- Global banks lost more than $10 billion
- Credit Suisse alone lost $5.5 billion
2022:
- Do Kwon launched LUNA and UST
- More than $40 billion vanished almost overnight
- Then came Three Arrows Capital, Celsius, and FTX
Now the warning is coming from KOSPI again.
Samsung and SK Hynix dominate the index.
More than $30 billion flowed into leveraged products tied to the two companies.
These products rebalance every day.
When prices rise, they buy more.
When prices fall, they are forced to sell.
The deeper the market falls, the more selling the products create.
KOSPI has already fallen 25% in just a month.
The leverage that created the boom is now creating the crash.
Forced selling is feeding more forced selling.
South Korea has warned the world before.
It's warning us again.
Pay attention.
For those keeping score at home*, this means the US government's equity portfolio now consists of THIRTY COMPANIES - up from ZERO just a year ago. (MP Materials was the 1st last July.)
Bonus: it's all coming from the guy fighting "communism."
*Don't worry bc @CatoInstitute is
Subscribe!! Discover the pattern world!! By looking at a stock’s entire detailed price path, learn how to spot and recognizable patterns that repeat themselves, whether the market is booming, collapsing, or in a long drawdown! Only 19 a month!
ICYMI... thread on the current high market dispersion index.. this is the exact kind of gap down in markets that can come out of nowhere when dispersion is extended.
Doesnt mean we crash but it means sharp moves or spasms can come out of the blue similar to this morning
Historically, several late-stage empires have experienced decade-plus periods of secular inflation. The Common Themes Across These Cases are:
1.Monetary distortion – often via currency debasement or excessive issuance without productivity growth.
2.Military overreach – empires straining to maintain or expand borders and influence.
3.Administrative decay – inability to collect taxes efficiently or manage spending.
4.Declining trust in institutions – both monetary and political.
These secular inflations typically signal imperial overstretch, the breakdown of old economic systems, and a transition period before reform, or collapse.