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Bank of Japan implements modest credit facility as deflation deepens

The financial markets received another deflation data point Tuesday, and it's not a minor one.

The Bank of Japan said it will begin a 10 trillion yen ($115 billion) quantitative easing program to commercial banks to fight deflation, Bloomberg News reported Tuesday.

Japan, still grappling with price pressure from a decade earlier -- the 'Lost Decade' -- has seen deflation pressures intensify this decade due to its aging population, low birth rate, and low consumer spending.

Continue reading Bank of Japan implements modest credit facility as deflation deepens

Suspension of Mark-to-Market: Rigging the scale is not losing weight!

There has been discussion of the possibility of suspension of the "Mark-to-Market" accounting rule. This has contributed to the current euphoria surrounding financial stocks. The logic is that this would stop the death spiral in the capital base of many of the banks and other financial companies, an action that is at the root cause of our current financial crisis.

A suspension of "Mark-to-Market" accounting would definitely give breathing room to banks. However, there are other alternatives, such as suspending financial regulatory requirements, which could have the same effect.

Continue reading Suspension of Mark-to-Market: Rigging the scale is not losing weight!

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IndexesChangePrice
DJIA-74.9212,454.83
NASDAQ-1.852,837.53
S&P 500-2.861,317.82

Last updated: May 27, 2012: 08:56 AM

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