著者

望月 和彦

出版者

桃山学院大学

雑誌

桃山学院大学経済経営論集 (ISSN:02869721)

巻号頁・発行日

vol.56, no.4, pp.73-123, 2015-03

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After reopening of stock markets, stock and commodity markets recovered stability temporary in mid-May. But in late May markets began to oscillate again. On 24th May the bankruptcy of Nanajushi Bank shocked markets severely. Mogi-shoten, a big trading company in those days, went bankrupt by failure of speculation on cotton.Nanajushi Bank was an affiliate company of Mogi-shoten and the bank lent about half of its lending to Mogi-shoten. Nanajushi Bank supplied money to silk industry and silk exports as well. Prices of silk threads and silk products fell sharply after the bankruptcy of Nanajushi Bank. Panic expanded to other markets. Many banks faced a run. Rice prices fell down in both future and kind markets because farms inflicted heavy loss by the price fall of cocoon wanted to sell their major product of rice to cover the loss. In money markets the interest rate of overnight lending stayed at lower level, on the other hand discount rate were high and few banks would lend money at that rate. Credits among banks were disappeared. Many trades were made through cash base. Lower interest rates didn't contribute to the recovery of economy. The economy fell into "the trap of liquidity". Businessmen expected the government and BOJ to take measures to the depression after the bankruptcy of Nanajushi Bank. Many newspapers and journals misreported that the government decided to take extra measures to rescue industries. And markets recovered temporally for the misreported news. But the Hara cabinet didn't take extra measures to the financial crisis. Disappointed by the inaction of the government, markets fell down again. In addition the wave of depression came from the US and European economies. The BOJ hesitated to take easy money policy, instead it lend money to an industry which succeeded to organize syndicates to finance from the BOJ. The BOJ provided relief loan at a discretional base which mass media attacked fiercely. A credit squeeze and market closure resulted in systemic risk of financial markets.