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To: MythMan who wrote (343958)9/19/2007 6:25:39 PM
From: Giordano Bruno  Read Replies (1) | Respond to of 436258
 
There is now a growing danger that global investors will start to shun the US bond markets. The latest US government data on foreign holdings released this week show a collapse in purchases of US bonds from $97bn to just $19bn in July, with outright net sales of US Treasuries.

The danger is that this could now accelerate as the yield gap between the United States and the rest of the world narrows rapidly, leaving America starved of foreign capital flows needed to cover its current account deficit -- expected to reach $850bn this year, or 6.5pc of GDP.

telegraph.co.uk

Be careful what you wish for.