Look at this chart which shows how foreign investor demand for
Freddie Mac debt has crashed from 50% to 20% within one year!
So far there seemed to have been a common believe that demand for U.S. securities
will hold up sufficiently well. This is mostly based on the fact(oid) that US
securities markets are so deep and liquid, far developed and well ruled by law,...
I broadly agree but submit a few more charts showing the same trend on other
types of U.S. government related debt and I will think twice. And so may others
which would be reflected in market prices. Generally I am optimistic that US
funding will be addressed but there seems to be a fast growing need to work on
and formulate an exit strategy.
The richest one percent of this country owns half our country's wealth, five trillion dollars. One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons and what I do, stock and real estate speculation. It's bullshit. You got ninety percent of the American public out there with little or no net worth. I create nothing. I own.
Sunday, June 28, 2009
Killer Chart on foreign investor demand for US government sponsored debt
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