Wednesday, September 17, 2008

"... return OF capital, not ON capital"

I noted yesterday that foreigners were rushing to stuff cash into the US Treasury pillow. Brad Setser chimes in, explaining that although there's no yield (see his graph below), at least the capital is safe. We hope.


James Higham said...

Yes, nice distinction.

dearieme said...

return TO capital, perhaps, if a large Yorkshire business and a large Scottish business are to be run from London.


Jame: not mine, wish it was. DM: rather witty, that.