For Investors, Cash Is King (D.C.'s Stalemate Spurs Flows Out of Markets and Into Bank Accounts)

Wall St Journal reports that investors, companies and small savers are stashing billions of dollars in plain-vanilla bank accounts, taking cash out of short-term markets, in an effort to shield themselves from any market convulsions caused by Washington's stalemate over the debt ceiling.

The movement of money, akin to that during the peak of the 2008 financial crisis, is one more sign that skittishness is on the rise as officials in Washington remain deeply divided about ways to reduce the deficit and lift the debt ceiling ahead of the Aug. 2 deadline.

Failure to reach an agreement by Tuesday could cause the U.S. to default …
.
Read more4 at http://online.wsj.com/article/SB10001424053111903635604576476551562186880.html?mod=WSJ_WSJ_US_News_6