August 14, 2012
AND THE PEOPLE WILL FOLLOW THEIR MONEY:
Troubles Abroad Keep Cash Flowing to U.S. (SUDEEP REDDY, 8/13/12, WSJ)
The U.S., despite losing its coveted triple-A debt rating from Standard & Poor's last August, remains a magnet for money fleeing the globe's trouble spots. As Europe's debt crisis rages, turmoil in Greece, Spain or Italy sends investors rushing into the safe arms of the U.S. government.Markets continue--for now--to worry far more about global economic weakness than rising U.S. obligations, pushing yields lower on Treasury debt. The nation can borrow for a decade for around 1.6%, a near-record low, as investors gladly hand over their money expecting almost no return, after factoring in inflation.
Posted by Orrin Judd at August 14, 2012 5:14 AM
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