In standing still and not cutting interest rates last week, the Bank of Japan sent a message to markets: you are on your own. The memo, though, was really intended for Prime Minister Shinzo Abe.
BOJ Governor Haruhiko Kuroda's inaction effectively confirmed that the BOJ's "bazooka" -- its powerful jolts of monetary stimulus -- is out of ammunition in the conventional sense. He has already cornered the government bond market, boosted stocks through exchange-traded fund purchases and driven the yen down by as much as 30%.
