They Crashed Japan on Purpose… Here’s The Real Plan

Felix & Friends (Goat Academy)•Aug 10, 2026

Summary

Felix describes a complex financial 'machine' where the U.S. government is printing money to quietly purchase the debt that Japan is dumping, thereby preventing a spike in interest rates that would crash the market. Felix argues that this artificial liquidity is the primary driver of current stock prices. Felix points to Warren Buffett selling $285 billion in Japanese bonds as a major warning sign that the 'smart money' is exiting the market. Felix further explains that Goldman Sachs data reveals half of the record profits reported by big tech are actually 'paper gains' from investments in AI startups rather than actual product sales.

Felix highlights the following stocks and market factors:

**Microsoft (MSFT)**: Felix states that Microsoft’s profits are significantly boosted by 'other income' from accounting valuations of AI investments like OpenAI. Felix argues that these gains are not real cash flow and could reverse violently if AI hype cools. Felix also notes that Microsoft's AI ambitions are physically limited by a massive shortage in the U.S. power grid.

**Amazon (AMZN)**: Felix explains that Amazon is part of a group of tech giants whose reported profit growth is doubled by non-operating income. Felix warns that when these paper gains are removed, actual business growth is much lower than the media portrays. Felix suggests that this creates a massive valuation risk for long-term holders.

**Snapchat (SNAP)**: Felix uses Snapchat as a primary example of how a famous, household-name stock can lose 93% of its value over five years. Felix points out that the stock did not crash overnight but bled out slowly, trapping investors who refused to sell. Felix emphasizes that without a clear exit strategy, even 'good' companies can destroy wealth.

Felix notes that the market's price-to-earnings ratio is currently around 40, which Felix identifies as the second-highest level in history, trailing only the dot-com bubble. Felix warns that while the bubble can persist, the downside potential is now historically extreme.

Mentioned Stocks

AMZN

Sentiment: SELL

Reasoning: Felix states that Amazon's profit growth is misleading because it includes massive non-cash 'other income' from investments. Felix warns that the underlying business growth is much slower than headline numbers suggest.

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MSFT

Sentiment: SELL

Reasoning: Felix argues that Microsoft's record profits are artificially inflated by paper gains from AI investments. Felix also points out that the physical power grid cannot support the data center demand required to fulfill Microsoft's AI promises.

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GOOGL

Sentiment: SELL

Reasoning: Felix identifies Google as one of the tech companies masking lower organic growth with paper investment gains. Felix believes these valuations are unsustainable as they approach 1929 levels.

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SNAP

Sentiment: SELL

Reasoning: Felix uses Snapchat to illustrate the danger of holding a stock all the way down to a 93% loss. Felix warns that investors often refuse to sell because it is a household name, even as it bleeds value over several years.

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