The David Lin Report · Friday, August 14, 2026
Thorne warns that a collapse in Japan's economy could trigger a replay of the US regional bank crisis, noting that Japanese financial institutions holding government bonds are currently experiencing net losses. He believes Scott Bessent is aware of this risk.
“And we could have a replay of the regional bank crisis in the United States when Paul raised rates too much, right?”
“Or on a larger scale, the difference from your narrative is Japan. If Japan blows up, that is really concerned and Bessent knows that.”
“And so, you know, think about the Japanese insurance companies and the Japanese banks that have GGBs that are basically net losses right now.”