As Europe and Asia Hoard Cash, Economists See Echoes of Crisis.
'European and Asian investors have been rushing into the United States bond market, spurred by a global glut of savings that has reached record levels.
Running from near-zero interest rates at home, foreign buyers are piling into the booming market for corporate bonds, including high-grade debt securities issued by the likes of IBM and General Electric and riskier fare churned out by energy and telecommunications companies.
A growing number of economists are concerned that this flood of money may inflate the value of these securities well beyond what they are worth, potentially leading to a market bubble that eventually bursts.
More broadly, however, these economists fear that an excess of ready cash in Europe and Asia is on the rise, which could keep a damper on global growth prospects.'>>>
http://www.nytimes.com/2016/10/25/business/dealbook/as-europe-and-asia-hoard-cash-economists-see-echoes-of-crisis.html?