Oct
24
As Europe and Asia Hoard Cash, Economists See Echoes of Crisis
By
The central business district of Chengdu, China. The persistent rise in excess savings in China and elsewhere echoes the dangerous savings glut before the financial crisis. CreditQilai Shen/Bloomberg
European and Asian investors have been rushing into the United States bond market, spurred by a global glut of savings that has reached record levels.
Running from near-zero interest rates at home, foreign buyers are piling into the booming market for corporate bonds, including high-grade debt securities issued by the likes of IBM and General Electric and riskier fare churned out by energy and telecommunications companies…
As Europe and Asia Hoard Cash, Economists See Echoes of Crisis
