This story is suddenly all over various media outlets (search Google news for "carry trade"), and I promise you some well-placed fund managers had their positions carefully set up to benefit from a day or two of market chatter about this.
For the record, Lyndon LaRouche agrees with you that this is about to cause the collapse of the global financial system.
http://www.larouchepub.com/pr_lar/2006/lar_pac/060226carry_trade.html
Real live FX traders, however, are treating it as just another normal trend shift.
http://www.dailyfx.com/story/dailyfx_financial_markets_headlines/dailyfx_financial_markets_headlines/6946_carry_trade_liquidation.html
Japan's economy is only so big and their banks can only loan so much money. That's why they've had such problems with deflation. Their banks never wrote off bad loans from the early 90's, so they had trouble loaning new money. They were in a banking gridlock.
Economic calamities are usually caused by problems that very few people know about. If the usual Chicken Littles and Kooks know about the carry trade, most likely it's nothing to worry about.