Companies and bankers rushing to stock cash up

The companies, bankers and the individual investors have been rushing to stock the cash and few other assets quickly. These are considered safe in the downturn for riding the chaos out. This sudden flight for safety has been creating the havoc in the markets for currency, bonds and loans to the degree which has not been seen since financial crisis which took place close to 12 years ago. The major concern as it was in 2008 is the point of liquidity which is the cash that is readily available and the other easily traded financial instruments. For the sellers and buyers who are feeling secure enough for doing these deals.

The investors have had trouble in the buying and selling of Treasuries and these are considered the safest among all of the assets. This is an unusual occurrence which is one of the most tradable instruments in the world. The funding in dollars, the currency which is traded most in the world has been getting a lot harder to obtain outside the United States.

The cost for funding money which the companies are using to make the payrolls and the other main short term needs has been rising for the firms which are rated weaker in United States. The premium investors are paying for buying the insurance on junk bonds has been increasing. Banks have been charging each other over the overnight loans and the companies have been drawing their lines of credit down in case they dry them up later.

Taking them together, warn a few bankers, investors and regulators that the red flags have begun to paint a difficult picture for the economy of the world.

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