The measure behind world’s financial markets is weakening – News of Bahrain- DT News

The measure behind world’s financial markets is weakening – News of Bahrain- DT News

The measure behind world's financial markets is weakening. Bankers, companies and individual investors are rushing to stock up on cash and other assets considered safe in a downturn to ride out the chaos.. The sudden height to safety is causing havoc in markets for bonds, currency and loans to a degree that hasn't been seen since the financial crisis of a dozen years ago.. Investors are having trouble buying and selling U.S.. Treasuries, considered the safest of all assets.. Funding in U.S. dollars, the world's most traded currency, is getting harder to obtain outside the United States.. The cost of funding for money that companies use to make payrolls and other essential short-term needs is rising for weaker-rated firms in the United States.. Taken together, warn some bankers, regulators and investors, these red flags are starting to paint a troubling picture for markets and the global economy: If banks, companies and consumers panic, they can set off a chain of retrenchment that spirals into a bigger funding crunch - and ultimately a deep recession..