U.S. capital inflows slow in March [China net seller]

[strizi64]

Foreign central banks net sellers for 1st time in nearly 2 years

By Rex Nutting, MarketWatch
May 16, 2005

WASHINGTON (MarketWatch) - Foreign demand for U.S. securities slowed sharply in March, the Treasury Department said Monday.

Net capital inflows fell to $45.7 billion in March from $84.1 billion in February as foreign central banks became net sellers of U.S. assets for the first time in nearly two years.

Chinese holdings of U.S. Treasurys dropped for the first time in just over a year. Japanese holdings fell for the second time in the past three months, while investors in the Caribbean banking centers increased their holdings by 31%.

In March, net foreign purchases of domestic securities fell to $60.1 billion from $98.1 billion in February. U.S. net sales of foreign securities, meanwhile, were nearly unchanged at $14.4 billion. ........ <snip>

http://www.marketwatch.com/news/story.asp?guid=%7B42DA7578%2D84BD%2D4053%2DBE49%2DA3E144C63167%7D&siteid=mktw

I sthe tide finaly turning :woohoo: ?

striz

[Roland99]

1. Ruh roh, Rorge

[leveymg]

2. Don't celebrate. That's the end of the line of cheap credit.

Interest rates gotta rise or inflation's back, big time. Tough choice: crash the stock market or burst the real estate bubble.

I don't want to see either happen soon, do you? Particularly since this Administration is likely to exercise the nuclear option. For real.

Think the war on Iran is about to start. All the pieces are in place now. Welcome to DU.

:bounce:

[strizi64]

6. I'm with you but

that will happen sooner or later. And I don't think that these imbalances can stay forever. Even as I don't live in the United States both, crash the stock market or burst the real estate bubble, will send shockwaves around the world that could put us all in a depression. It's not a nice situation because there is no easy way out, no cheap solution. But I would prefer that happen under Bush or another "R"-Administration in the future. A free pass for a "D"-President.... Thanks for welcome :), nice place here.

striz

[cliss]

11. I agree, Striz.

While none of want to see financial bad times and storm clouds on the horizon, we can certainly welcome some kind of correction. The US has been operating with huge imbalances for a long, LONG time.

These imbalances have led to perversions in government, in the press, down to the grass roots level. It's time to fix the messes.

I for one am very glad that it's finally coming. It's simply unsustainable in the long run anyway, so it needs to be corrected. Whether we like it or not.

[ckramer]

7. Stock market is already half dead

so the housing bubble is the one to pop...hmmm...interesting.

And you are right, wars can save America. Boosh would start WW III if the sorry economy can be saved, I have no doubt.

[K-W]

9. ignore, mispost

[ausiedownunderground]

3. Caribbean banking centers? I wonder who this is??

People say its the "Hedge Fundsters"! I don't think so! I know so!!

[bpilgrim]

4. guess, those trade sanctions have reprucusions...

probably, one of them unknown-unknowns to this crew

peace

[ozymandius]

5. This is what happens when a client snubs his banker.

If you told your bank to "go to hell" isn't it logical that the bank will find some way of turning the screws?

[aneerkoinos]

8. Last safety net

"investors in the Caribbean banking centers increased their holdings by 31%."

When the drug lords give up "investing" (=laundring) in dollar papers, it's rock meet bottom... :D

[AP]

10. There are such huge swings in the data, and when one thing looks bad...

...something else looks good.

For instance, the dollar is rallying lately. The FT said that this data today would determine whether it continued to climb against Asian currencies. Well, the data is out, and the dollar seems to still be doing OK. (And this is despite the fact that China migh change the peg soon on their currency.)