On the Brink: Japan's $3 Trillion Risk That Could Upend Global Finance

(This story was originally published on March 29. Bank of Japan policymakers meet today, with investors speculating that they will loosen their tight grip on interest rates.)”Bracing for financial seismic shocks, investors await a pivotal meeting as the Bank of Japan contemplates a policy shift likely to end a decade of ultra-low interest rates. This impending end of the world’s boldest monetary experiment risks ripple effects on the global economy, given Japan’s extensive overseas investments and their status as the largest foreign holders of US government bonds. In an era of rising global interest rates, the potential reversal of Japan’s ‘easy-money’ era could destabilize markets from Brazil to Europe, heightening scrutiny of lenders and echoing recent bank turmoil in the US and Europe.”