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The article reports that China has placed second as top foreign holder of U.S. debt to Japan.

The author offers opinions on the actions of the U.S. Federal Reserve Board in coping with the financial crisis caused by the fall in housing prices. The board's decisions are seen as having some resemblance to the actions of the Bank of Japan when that country's economic bubble burst in the 1990s, which did not prevent a lengthy recession. A liquidity trap, where low interest rates do not create economic growth, is seen as a possibility.

The article speculates whether the U.S. dollar will become prominent in the carry trade. Carry trades involve borrowing in a country with a low-yielding currency and investing the proceeds in a higher-yielding country. For several years Japan's yen has been a favored low-yielding currency, but falling interest rates in the U.S. could make the dollar a more popular carry-trade vehicle.

The article discusses financial-market results for March 15, 2011. In Japan the Nikkei stock index rose almost 376 points, while in the U.S. the Dow Jones Industrial Average recovered partly from a 296.91-point decline to finish down 137.74 points. Prices of several commodities fell amid concerns about the impact of an earthquake and tsunami in Japan on the global economy.

The article reports that hedge funds who had bet against Japanese government and corporate bonds in anticipation of worsening economic woes have earned unexpected profits from declining Japanese financial markets in the wake of a massive earthquake and tsunami that struck Japan. Hayman Advisors LP and Commonwealth Opportunity Capital are among funds that had positioned themselves for falling bond prices.