Sunday, January 20, 2008

"Economic Collapse" or "Investment Opportunity"?

Peter S. Goodman and Louise Story appear in the Gray Lady with Overseas Investors Buy Aggressively in U.S. and I'm immediately wondering what would Naomi Klein have to offer on this news. I continue to be amazed at how her work is influencing my thinking.

Looks like the shoe is on the other foot now in some respects. That "sovereign wealth funds" are saving the day for Wall Street banks seems about par for the course. Market capitalism meets state capitalism? Reckon Joe and Jill Sixpack will hear much about this in the campaigns for the White House and Congress? Unfortunately, I expect neither party to have much to say. Surely the GOP will play their usual "fear the foreign" angles yet I think they'll be talking in code, if not explicitly, of the brown people.

The close from Goodman and Story is as follows:

... But even if political tension increases, so will the flow of foreign money, some analysts say, for the simple reason that businesses need it.

“The forces sucking in this capital are much bigger than the political forces,” said Mr. Garten, the Yale trade expert. “If there is a big controversy, it will be between Washington on the one hand and corporate America on the other. In that contest, the financiers and the businessmen are going to win, as they always do.”

Corporate American is different that Washington? Would that it were. And again I'll remind us that the many multi-nationals we have now truly blur the line between being "American" or "Foreign" owned. What a complicated time we live in. P/W

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