The big headline in the Financial Times on Wednesday, October 17, 2007, was "Investors flee US securities." It seems that "[f]oreign investors slashed their holdings of US securities by a record amount as the credit squeeze intensified." Apparently, faith in America as a good investment is diminishing.
The article quotes Alan Ruskin, chief investment strategist for RBS Greenwich Capital, as saying, "The bad news is that [the data] plainly show how vulnerable the dollar is to a continuation of the credit crunch-risk adverse environment."