We have been watching the foreign buying/selling trends of U.S. debt for some time. It is important as this is how we are considering funding (not paying) for the outlandishly high level of bailouts that we have provided.
Over the course of the past year, there has been much speculation that there will come a day of reckoning and China or other important owner will begin to slow their buying and eventually sell in order to fund their own economies and obligations.
That day is not here….yet. But, if you look at the trends, we are starting to see a few countries lighten their loads. In particular, the U.K. has been a net seller as has been the case for Taiwan.
Disclosure: Horowitz & Company clients may hold positions of securities mentioned as of the date published.