Nervous investors push financial crisis into next phase

As credit markets seize up, jittery investors are fleeing to the safety of Treasury bills and other investments, which could cause further, serious damage to the U.S. economy. "It's like having a fire in a cinema," said Hyun Song Shin, an economics professor at Princeton University. "Everybody is rushing to the door. You are rushing to the door because everyone is rushing to the door. Clearly, as a collective action, it is a disaster."

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International Herald Tribune · Financial Times (free content)

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