I saw what I thought was a crazy comment from a financial website (not a major one) saying that BIS told US to bring home treasuries so they can blow up at home. But this idea has grabbed more of my attention especially after reading this post from ContraryInvestor.com;


The article talks about our foreign supporters reducing their purchases of US assests. Add to this as the markets drive more US citizens to look for security in treasuries, wouldn't this be the time for foreigners to start selling? My back of envelope numbers (from a New York Times article on orders of magnitude values) show 4 trillion in treasuries and 22 trillion in equities. By selling 20% of equities you could buy out the treasuries. Maybe this is why longer term treasuries have been so hard to sell, when panick hits what is the best thing to sell, why short term, no?

I hope I haven't totally screwed up on something here, comments?