This is CBS I on the world with John Bachelor.

Here's John Bachelor.

Bloomberg summarizing the global sell-off.

6.4 trillion stock wipeout has traders fearing,

quote, great unwind.

The pillars that had underpinned financial market goes the

subhead for years have been shaken, shaken pillars. I welcome Elizabeth Peek,

who's my pillar watcher, any time in the markets are in disorder, to make sense of we have been here before,

what does this look like, and how does it connect to the political contest underway in the United States right now?

There's a very good evening to you of 6.4 trillion pretty soon you're talking real money

The markets reversed and the first explanation

was it had something to do with the carry trade out of Japan. Second

explanation had other stories to offer but right now a market that was very narrow

for a long time all year this year certainly the Magnificent 7 and the S&P 493 and we jested about that for a long time.

A narrow market is not stable.

So we expected this question mark and now that it's here we know what we're doing

question mark good evening to you Liz good evening John lots of question

marks well alright so what happened yesterday?

I think you're right that there was this carry trade, the Bank of Japan raised their rates and the prospect of the Fed cutting their rates kind of threw into turmoil a carry trade that had been going on for many, I don't know how many months

honestly, but it was a bigger trade I suspect than many people anticipated.

It led to wholesale selling of Japanese stocks. The Japanese market got

completely towards yesterday and astonishingly I think it was down 12% it came back 10% overnight so you know some cooler heads prevailed kind of saw that there were pretty good values with that tremendous selloff

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