On 02/04/2008, Mario Goveia <[EMAIL PROTECTED]> wrote: > Mario responds: > > > Goans in the middle east who may be interested in investing in the US need > to know that Gabe is simply factually wrong in his rudely worded post when he > writes that, "The U.S. Govt only wants foreign entities, including Sovereign > Wealth Funds, to buy T Bills and to bail out doggy US financial > institutions."...............
RESPONSE: Goans in the Middle East beware, the fall of the US Dollar. Mario is selective, conveniently avoided this part in the posting: Excerpt: To the puzzlement of some economists, the current debate centers on direct foreign investment, the most stable type of investment. Yet the far larger share of foreign investment is in Treasury securities, corporate bonds and stocks. If foreigners suddenly decided to reduce their holdings of these assets, the dollar could plunge in value, interest rates could soar and stock prices could suffer a big blow. David Wyss, chief economist at Standard & Poor's in New York, cited the 51% share of foreign ownership of the federal government's debt — and that share is rising. "That strikes me as scary," Wyss said. "When you make yourself so dependent on inflows of capital from the rest of the world, the question is what happens if the inflows slow down." Ends. Please note the searched item, which was probably Googled, was written in 2006, the true pic. is even bleaker now. Since Mario chose to highlight this post, I trust he agrees with the whole, in its entirety and not just selectively. There was somewhat disquiet, just today, on CNBC, that foreigners now owned 10 percent of CitiBank. I repeat the US Govt. would be thrilled and happy if foreigners only purchased T bills and the like. Buy T bills yielding under 4 pct and loose 20 pct on the devaluation of the US Dollar cest la vie; the same would be true, if an European bought US stocks - 20 percent depreciation pain of the US dollar and some more after that.( stocks have fallen) Nestle and Shell and BP are international multinationals, the same as their US counterparts Exxon, Big Mac, the two Colas, Boeing, Citibank and a host of others. This is the last post on this from me, I shall sell my Encyclopedia Britannica and rely on Mario, who knows everything, or perhaps rely on Google for half finished omelettes. -- DEV BOREM KORUM. Gabe Menezes. London, England