Financialization.

Editor,
The Federal Reserve's theory that "foreign investors are still investing more than enough money in American stocks and bonds to cover the [trade] deficit" is consistent with the "financialization" of the American economy, meaning that export of equities and debt is increasing while export of goods and services is diminishing. This is good for huge financial institutions and wealthy investors, as were the merger and acquisition frenzy of the 1980's and the stock market bubble of the 1990's, but ordinary working people now are being hurt by this as they were during those debacles.