Saudis to retrieve $360 billion abroad
with about 60% of that money invested in the US, we’re looking at a significant chunk being taken out of the US economy.. will this trigger some panic selling and the impending housing crash that’s being talked about?
Re: Saudis want their money back!
No expert on economics, I would think it all depends on how their money is invested.
Re: Saudis want their money back!
About time. Though I doubt the money will be returned just like that.
If it seemed that Saudis are in fact serious about bringing the money back, I'd imagine protracted delay tactics will ensue in the form of freezing assets on suspicions of terrorism support and assorted fuzzy reasons.
Re: Saudis want their money back!
you've got it Faisal..
the recent closing of the embassy is just another step towards the whole booga booga about to be unleashed..
another 'terror attack' will follow.. blame placed again on Saudi connections and their assets conveniently frozen..
Re: Saudis want their money back!
^ Two things for you kids, can you tell me how does a country that has a per capita income of $7k currently from a $22k in 1982, pay for a welfare state like Saudi Crapabia? What good is capital if it is not invested in places that are safe. What do you want them to do? Buy Mujaheddin funds or T-Bills?
And The reason it takes a long time to redeem on foreign loans is because not all are on the same terms, secondly, no on ewants to sit on cash. You take monies out to invest it into another vehicle for capital appreciation.
I am beginning to understand the impact of madrassah logic even on western trained and educated folks like PA and Faisal. And these are the ummah's brightest... Woe is me indeed!!! :(
Re: Saudis want their money back!
PD would u differentiate between genuine delays in liquidating assets opposed to a Government freeze? if it takes long for them to get it and stuff their mattresses it's fine.. but we just discussed a scenario in which they aren't by some contorted law allowed to take their own money out and invest elsewhere..
who cares what they do with their money.. maybe buy more camels and little jockeys from Pakistan.. all i'm concerned about is if it'll have any negative impact on the US economy.. have any ideas? forecasts?
Re: Saudis want their money back!
$360Bn invested abroad in the last 18months? First of all, it doesnt say where from and secondly, invested in the last 18months only. Petrodollars cud hv been invested anywhere in the world, given the current political climate and investment opportunities available, its very likely this money was invested in Euro-land or Asian economies. Since Saudi revenues are US Dollar based, its equally probable this money was reinvested into US treasuries or securities. On the second point, $360Bn investment equates to their oil revenue generated over the period 2001-2004, forget about the trillions earned and invested abroad over the last 30years.
Provided these investments are made in the US and are withdrawn as stated by Saudi authorities, well it will certainly have a negative impact on yields (rise), and stocks. More importantly, an adverse impact on already strained US-Saudi relations. Iam very sceptical of such statements, fact is US is the biggest fish out there in terms of oil consumption and Saudi's wud never want to offend not only their biggest customer but also supreme protector.
Re: Saudis want their money back!
PA, your conspiracy hat is too tight. You keep discussing scenarios and what if’s without a keen grasp on what the situation on the ground is. When you hold a US treasury, say a 20 yr note, if you want to redeem it early, you have to get it at a discount to market. They have invested $250 B in all sorts of instruments, 20 yr Tbills, real estate, FII etc…if they were to liquidate because they were going out of business then they would get perhaps 40% of the value of the assets at best. Also, the impact on a $11 trillion economy in the above example is less than 1%. Less than half the payroll of the yankees.
What the fk is wrong with you people? You used ot make me smile..with the seinfeldisms, the play on words…now it is just utter disappointment. (it is not you, it’s me)
Re: Saudis want their money back!
^ these pretezels are making me thirsty. (hows this pindi)
Re: Saudis want their money back!
See I knew it .. umm that it really depends on how their money is invested.
Re: Saudis want their money back!
I calculated wrong..it is actually less than .1%
Re: Saudis want their money back!
Saudi Arabia-has an image problem. But with the oil prices rising they will 'buy' their good- will in the world.
Re: Saudis want their money back!
They might just invest in the Euro markets.
Re: Saudis want their money back!
^ did you go to school with Faisal and PA?