January 25, 2008
The Non-Story: Arab Money, NY Banks...
A little bit back (here and here), I incorrectly predicted the Sov Funds - (state investment funds, specifically re "Arab" (Gulf) money) - would become a political issue. I was wrong. With a small consolation that my feelings on the credit market has some (rather small to be sure) prescience.
While I am consumed with financial business, it does strike me that the "Arab" billions (and yes there are fundamental technical differences, but that really hardly matters in the political realms) are at once 'welcome' only in extremis - I am sure American Senators got briefings on the meaning of a Citi insolvency, e.g.) and also an illustration of the difference between headline control and... well merely plausibly deniable influence. It would appear that foreigners, above all non-European foreigners are only welcome in the US of A if they give up their ownership rights.
All quite well, but fits poorly with the American jihad (and I do regard this as a jihad salih) for investor rights and standards. Worth a conversation. And of course, yes, I skipped over details which I know well but require another few paras or better writing on my part.
Posted by The Lounsbury at January 25, 2008 02:37 PM
Filed Under: Foreign Policy & MENA
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Here, your prediction wasn't that off the mark...
I was kind of hoping for an insolvency; visions of sitting around in my pyjamas, in a cloud of yellow Dorito dust, pissing away the severance (assuming of course there was a package) by making stupid trades on the Internet all day.
Oh well, maybe next time. Re the cited article, might not be too far off, since no one really knows just how much more of this there is to go, and the politicos are already bearing down.
Posted by: pantom at January 26, 2008 11:45 AM