127 years ago today, December 31, 1898 (November 19, 1898, the Japanese stock market crash in 1989. Note: The above chart shows the historical trend of the TOPIX index and the non-Nikkei 225 index. The Japanese call the unusual economic boom that began in December 1986 the "Heisei boom." After this prosperity, Japan's per capita GNP at that time exceeded that of the United States, Germany, France and the United Kingdom. Japan's GNP in the world also increased from 6.4% in 1970 to 13.7% in 1990. The amount of net external assets reached US$383 billion in 1991, ranking first in the world. With the support of "economic prosperity", Japan's stock market rose almost unilaterally from 1986 to 1987. The Nikkei index rose from 13113 points in February 1985 to 26000 points in September 1987, nearly doubling. When the global stock market crash broke out in October 1987, Japan not only failed to learn from the collapse of the U.S. stock market, but immediately recovered and its stock price bottomed out. In 1988, the Japanese stock market continued to rise, and the Nikkei index exceeded 30000 points by the end of the year. In 1989, Japan's Nikkei Index hit a new high and reached 38915 points on December 19, 1989. ¢Ú It was more than tripled from its lowest point in 1985. In 1989, the market value of Japanese stocks reached 630 trillion yen, 1.6 times the GNP of that year. In 1985, it accounted for only 60% of Japan's GNP. Faced with Japan's economic prosperity and soaring stock market, Japanese people were so intoxicated that they completely lost their due reason and joined the stock market one after another. However, Japan's economic prosperity implies a huge bubble economy component. In the early 1980s, Japan implemented financial liberalization policies and implemented a loose ultra-low interest rate policy. With the economy booming and income increasing, more people in Japan have shifted bank deposits into the stock market and real estate, and have not hesitated to borrow money from banks for speculation. In order to expand business share and market share, banks actively promote people to speculate in land, real estate and stocks, resulting in a sharp rise in land, real estate and stock prices to alarming heights. In the late 1980s, all economic entities in Japan fueled the inflation of the bubble economy to varying degrees. People with increased incomes joined in when they discovered that real estate and stock speculation had good returns. However, a bubble economy cannot last long. If there is any disturbance, the bubble will burst. In 1989, the Japanese government raised official interest rates five times, and the Japanese stock market began to experience high levels and large fluctuations. In 1990, when the Gulf War broke out, Japan, which relied entirely on oil imports, fell into extreme panic and its share price fell sharply. With the end of the Gulf War, Japan's stock market rebounded strongly, but it was no longer able to reach its original height. However, people still have illusions about bubble-style prosperity and hope that the impact of interest rates and the Gulf War on stock prices will be eliminated as soon as possible, and stock price fluctuations will stabilize in the short term. However, the expectations of almost the vast majority of stock investors and speculators fell short, and the Japanese stock market plummeted all the way to 14304 points on August 18, 1992 (the lowest point fell to 7607 points in April 2003). The cumulative decline reached 63.24%, creating the largest decline in the history of the Japanese stock market. Since then, the Japanese economy has fallen into a deep economic crisis and has still been unable to recover more than 10 years later. Japan's stock market crash occurred on December 31, 1989, and the Japanese stock market bubble burst. In the early 1990s, the Japanese stock market suffered the largest stock market crash in history. On December 31, 1989, the Nikkei Index reached a brilliant high of 38915 points. However, in the 1990s, the Japanese stock market suddenly changed, and the stock market plunged. By October 1990, the stock index fell below 20000 points. On April 1, 1992, the Nikkei Average fell below 17000 points, and the Japanese stock market fell into panic. On August 18, it dropped again to 14309 points. So far, the Nikkei index has dropped by 63% from its peak, and the total current price of listed stocks has dropped from 630 trillion yen at the end of 1989 to 299 trillion yen, a decrease of 331 trillion yen in three years. The bubble in the Japanese stock market has burst. After Japan's stock market plummeted, economists called Japan's overheated economic growth caused by stock market mania in the late 1980s a typical bubble economy. After the stock market was hit hard, the bubble economy burst. This is the Japanese phenomenon that the world saw in the 1990s. In September 1985, the finance ministers of the five Western countries signed the famous "Plaza Accord" in the United States and decided to increase the exchange rates of other currencies against the US dollar. In the following months, the yen quickly appreciated from 250 to 149. In October 1987, the New York stock market crashed. The United States forced Japan to continue to cut interest rates quickly, and Japan became flooded with liquidity. The stock market and real estate soared simultaneously, and a huge financial bubble began to take shape. The Tokyo stock market rose 300% in three years, and real estate was even more eye-catching. The total real estate market in the Tokyo area alone exceeded the total real estate value of the entire United States at that time in US dollars. Japan's financial system has reached a critical juncture. However, the Japanese "have a belief that the Japanese stock market cannot fall" and are not vigilant. American financiers, on the other hand, used a new financial bomb-"stock index futures" to come to Japan to bet against the Japanese insurance industry on the future rise and fall of the index. A large number of stock index short put options have finally begun to show off. On January 12, 1990, the Nikkei index fell sharply. Since then, Japan's stock market has plunged 70%, real estate has declined for 14 consecutive years, and Japan's economy has fallen into a recession that has lasted for more than a decade. Yoshikawa Motada believes that the wealth loss of this disaster is comparable to the consequences of defeat in World War II. Some people even believe that this is a conspiracy by international bankers to defeat Japan's finance and economy. "Financial Defeat" written by Motada Yoshikawa, it can be seen from the title alone that many Japanese admit that Japan has been completely defeated in this international financial war.