Monday, March 2, 2009
‘Leave it to Beaver’ Savings Lifts U.S. Bond Holdings
"What if the Chinese don't buy our debt?"
Then Americans will. Or someone else. That worry has always been unfounded because the money to buy gov't securities comes from government spending itself.
Americans are lifting their purchases of government securities to levels not seen in decades according to this story:
U.S. government debt is gaining favor with a group of investors who lowered their exposure to Treasuries in nine of the past 11 years -- American citizens.
Merrill Lynch & Co. says U.S. bonds owned by individuals likely will account for 2 percent of households’ financial assets by 2013, up from 0.2 percent now. That level hasn’t been hit since the months following the Sept. 11, 2001, terror attacks, Federal Reserve data show. Americans’ direct purchases will rival the $1 trillion foreigners probably will buy in the next five years, Merrill predicts.