Super-investor Warren Buffet, the sage of Omaha, had never invested in a company abroad before. Last week he did, with big-time billions and a tough message: the USA does not have its house in order, and he's looking to invest overseas. So are millions of other Americans.
While American stocks have poked along, foreign markets have zoomed. And American dollars have followed. So far this year, US investors have poured twice as much into international mutual funds as US funds. Seventy percent of new investment money is rushing aboard.
It's a tidal wave, a vote of confidence in other economies, and of doubt about our own.
This hour On Point: American dollars rushing everywhere else, and what it means for you.
Karen Richardson, Staff Reporter for the Wall Street Journal
James Jampel, Manager of HITE Hedge LP
Mark Zandi, Chief Economist & Co-founder of Moody's Economy-dot-com
Michael Mandel, Chief Economist for Business Week Magazine.
This program aired on May 10, 2006.