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China and Persian Gulf countries will rescue US economy

30 November 2007
Written by: webmaster Posted under Globalization

Huge inflow of investments from state investing funds of China and countries of Persian Gulf can rescue going to pieces economy of the USA, which till now cannot recover from August credit crisis.
Though the West has always with care concerned to funds of these states, financing from developing countries in bank, financial and broker branches of the USA is growing.
Purchase of the largest American financial corporation Citigroup Inc’s shares (about 4,9 %)  for 7,5 billion dollars by fund from Abu-Dhabi Abu Dhabi Investment Authority (ADIA) became one of the loudest transactions.  And by estimation of economists from Morgan Stanley, since April 2007 state investing funds have enclosed nearby 37,3 billion dollars in world financial actives.  In Morgan Stanley’s report it is spoken that such sharp inflow of investments can lead to a rise in prices on actives and give necessary capital to suffered from crisis banks.
However, while it is early to make conclusions, whether inflow of financing to the USA can help to avoid recession and calm the world markets. So, chairman of Roth Capital Partners LLCmarks that actually these funds are not interested in improvement of a situation in the USA - they are excited only with an opportunity of reception of profit and experience (China is more interested than others).
Analysts also believe that especially strong interest of the state investment funds is caused by financial institutions. For example, Singapore fund Temasek Holdings holds about 38 % of the securities in financial actives. And now these funds can really rescue the American banks as new capital needs to receive opportunities for realization of attractive business opportunities.

 




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