US faces credibility test

03/10/2008 § Leave a comment


World leaders and financiers of the country’s deficit and debts are now waiting to see how it cleans up the big mess in its financial system. If they decide that the US has no will to fix this problem, they will withdraw their money or sell US assets, which would further fuel the crisis.

At present, foreign creditors are holding about $16.5 trillion in US assets. They invested in these assets because they had faith in the financial system and in the dollar. Of this $16.5 trillion, $2.708 trillion is held in US treasuries, $1.65 trillion in agencies, $2.86 trillion in corporate bonds, $2.425 trillion in equities, $2.6 trillion in foreign direct investment and $4.26 trillion in other assets.


The Nation: Thailand’s top English news website


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