As feared, foreign bond holders have begun to exercise a collective vote of no confidence in the devaluation policies of the US government. The Federal Reserve faces a potential veto of its rescue measures.
Asian, Mid East and European investors stood aside at last week’s auction of 10-year US Treasury notes. “It was a disaster,” said Ray Attrill from 4castweb. “We may be close to the point where the uglier consequences of benign neglect towards the currency are revealed.”
Tags: Banking System, Bear Stearns, Bonds, China, Collapse, Disaster, Fannie Mae, Fed, Federal Reserve, Foreign, Freddie Mac, index, Inflation, investors, Nikkei, Petrodollar funds, rescue, US Treasury, veto, Wall Street Journal