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Money running scared

First, everyone was so confident, even sub-prime wasn’t beneath them.  Then fear set in.  Everyone raced to T-bonds.  Yields even went negative on T-bills periodically.  Gold shot up.

Then bankers realised the US budget deficit would flood the market with bonds.  They started moving away from the US dollar, into Euros and the Aussie and other assets.  Then Greece and Dubai look shaky. 

They race back to the US dollar.

What are they going to do next?  Where can they run to?  Eventually, they’ll end up in farmland and gold.  Some in cash.

Frightened little things.  You’ve got to feel for them.

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