Wednesday, February 04, 2009

Bloomberg.com: News

Bloomberg.com: News: "Jan. 30 (Bloomberg) -- Forty percent of Japanese investors said there is a risk that the U.S. government will default on its debt, a survey published by Barclays Capital showed.

Almost 34 percent of the 66 respondents in the poll sent to Japanese institutional investors from Jan. 26 to Jan. 28 said there is a “significant” or “slight” risk that the U.S. will lose its AAA sovereign debt rating this year. Twenty-two percent said they were concerned about the credit risk of German government bonds. China surpassed Japan in September to become the biggest foreign holder of U.S. Treasuries."

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The article goes on to say that foreign investors are concerned that the bond market won't be able to absorb the massive borrowing required to fund the colossal "stimulus package" Obama and the congressional Democrats are planning. The more I read about this the crazier that policy appears.

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