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In the last few months, fearful investors have again cut their risk exposure, pulling money from around the world and parking it in the safety of assets like American bonds.
However, any escalation of the crisis in Ukraine this coming week could seriously hurt investor sentiment, and some investors may be tempted to cash in profits from their stock portfolios or seek the perceived safety of assets like U.S. government debt.
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In bad times like today, they put jobs in jeopardy because they have stripped away the safety net of assets and reserves built up over many years".
That's because direct lenders use physical property as collateral for CRE debt, forming a safety net of assets that minimizes the effects of a default.
"Of course we are concerned about the safety of our assets.
China's premier, Wen Jiabao, said that he was "concerned about the safety of our assets".
And while we take comfort in the long-term safety of U.S. assets, we also see opportunities for growth.
"We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets.
He said then: "We have lent a huge amount of money to the U.S. Of course, we are concerned about the safety of our assets.
Central-bank purchases have further reduced the available stock of safe assets.No safety in numbersA troubling finding of the literature is that attempts to soak up excess savings serve only to undermine the safety of the assets supplied.
"We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets," Wen said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com