Belmont Club » The Turn of the Card

Meanwhile the markets continued to fall as investors fled to gold and ironically — Treasury Bonds. The Los Angeles Times notes that the Dow Jones average fell 600 points by midday on a Monday opening. “The appetite for Treasury bonds suggests that the Standard & Poor’s downgrade of the U.S. has not shaken the faith of investors in U.S. bonds.” It also suggested that the market’s skittishness was related to the general weakness of the economy rather than just being an outcome of the downgrade.