"a"? TRY, "THE ONLY":

U.S. Assets Are a Safe Haven…Again: Nervous investors flock to American stocks and Treasuries (Vincent Del Giudice and Daniel Kruger, 5/25/10, BW Magazine)

Investors spooked by the Greek debt crisis have been seeking shelter in the dollar. Global purchases of U.S. equities, notes, and bonds totaled $140.5 billion in March, more than double economists' projections, after net buying of $47.1 billion in February, the Treasury Dept. reported on May 17.

The figures mark a change from last year, when investors, concerned about the potential impact of U.S. budget deficits on the dollar, moved money to other countries. "Diversification was a major deadweight on the dollar last year," wrote Alan Ruskin, head of foreign-exchange strategy at Royal Bank of Scotland Group (RBS) in Stamford, Conn., in a note to clients. "Reverse diversification is now a major source of vulnerability for the euro."

Where does the rest of the global economy turn if we start paying down debt?

Posted by Orrin Judd at May 27, 2010 6:31 AM