Japan's Central Bank Cuts Rates

Everyone in the world seems to be having money problems, not just the United States and the stock market. Japan's central bank cut its key interest rate to 0.1 percent from 0.3 percent. They joined the U.S. Federal reserve in lowering borrowing rates to nearly zero. This is during the ever-worsening outlook for the global economy. It was the bank's second cut in less than two months and was widely expected so it was no surprise to anyone.

The Bank of Japan has offered a dismal outlook for the world's second-largest economy. Therefore, they introduced steps to thaw a growing credit crunch for companies. They are buying commercial paper and stepping up their purchases of government bonds to $15.7 billion per month. It is seems just like bowling. you knock down one pin and it knocks down another and it just goes all the way around the world. Scary, isn't it?