Saudi investors 'could withdraw US funds'

bbc ^ | 8/19/02

[sarasmom]

"this is a new kind of war, and will be fought differently.."

The world has a choice "you are either with us, or you are with the terrorists"

Tick..tick..tick

[Mad_Tom_Rackham]

But what will they do with it then? Invest in Euros? Asian markets? The damage they do by pulling out of the modern world is less than the damage from allowing them to stay in the 21 century.

It will all end up back in the US. Funds go to where the opportunites are.

[Bush2000]

Saudi investors have threatened to withdraw some of the $750bn (£487bn; 766bn euros) they have invested in the US after families of 11 September victims filed a lawsuit against Saudi banks and charities for damages.

Let them. They're bluffing: They don't have any other place to invest.

[meenie]

The United States has to freeze the assets of Saudi Arabia until this is settled according to US and international law. This is going to get real interesting. The Saudis do have the right to withold oil which would be their logical move.

[Bush2000]

The United States has to freeze the assets of Saudi Arabia until this is settled according to US and international law. This is going to get real interesting. The Saudis do have the right to withold oil which would be their logical move.

It may well be a theoretical move but the fact of the matter is that it's the only natural resource that they have. For practical reasons, the house of Saud can't afford to cut off the flow of oil. Without military support, it cannot survive.

[Poohbah]

Memo for King Fahd: you're either with us, or you're with the terrorists.

To quote the knight from Indiana Jones and the Last Crusade: "Choose wisely."

[Straight Vermonter]

Dr Abd-al-Rahman al-Zamil, chairman of Al-Zamil Group, has urged Saudi investors to repatriate their funds to the kingdom, Saudi newspaper Arab News reported.

This would be the equivalent of leaving your Beemer in the south Bronx with the keys in it. These guys know that it is just a matter of time before they are ousted and when they are any money in the kingdom is gone. The US has always propped up these fat bastards and that looks to be changing.

[Henk]

Does this mean another $1 trillion in stock market losses as the Saudi's dump stocks?

Let's hope so. Consider who will be losing the $1 trillion if the Saudis have to have a fire sale to get rid of their assets.

[Koblenz]

Money chases the best investments. If they indeed have this type of money invested in the US, and they all pull it out, then there'll be a short term spike down. But then European hedge funds and investors will see that US assets are comparatively underpriced, and they'll shift more of their assets in to the US. Especially if the Saudis shift their money to Europe.

The Saudis need to put their money somewhere. There's nothing in their own country to invest in. And if they decide to build more highways, water desalinization plants, mosques, skyscrapers, or government buildings, then they'll take their money back to Saudi Arabia, and promptly spend that money. Since there are no companies in Saudi Arabia, they'll have to hire foreign, mainly American, companies.

There are a few local companies, all staffed with foreigners, so if they hire those companies, most of the money will leave SA anyway.

In conclusion, the money is going to end up here, somehow. There's nothing to buy in SA except sand and oil, and after a certain point, you don't need oil anymore.

[wingnuts'nbolts]

We could sieze all Saudi bank accounts, realestate investments etc., too. All your money now belong to US.

[Lessismore]

Where the heck else are they going to invest that kind of money and get any sort of decent return?

Zurich, Geneva, Frankfurt, Luxembourg, Amsterdam, Milan, London, Hong Kong, Singapore, Tokyo, Shanghai, Seoul, Moscow?

[Jorge]

"Does this mean another $1 trillion in stock market losses as the Saudi's dump stocks?"

No, because the victims who get the money have to invest it somewhere...

That assuming they get anything and that it coincides precisely with Saudi divestments in the stock market, which is highly unlikely.

[Jorge]

Well, if the U.S. is freezing the assets of terrorists, the answer is fairly simple.

So the U.S. is going to declare all Saudi investors to be terrorists? You're kidding right?

[A CA Guy]

Well, we may have to be at war with them as well if they choose the wrong side.

[Republican Wildcat]

how about we counter-threaten to buy NONE of their oil?

[Alamo-Girl]

Thanks for the heads up!

[FreeReign]

It accused three senior Saudi princes - including Defence Minister Prince Sultan, the kingdom's third highest official - several Saudi and other foreign banks, and Sudan's government of funding Osama bin Laden.

The lawsuit alleges Saudi money has "for years been funnelled to encourage radical anti-Americanism as well as to fund the al Qaeda terrorists".

I don't think he has a case -- prove me wrong Ron Motley.

[Mad_Tom_Rackham]

Your such a meenie! But I agree. We have absolutely no obligation to the Saudis.We do have an obligation to ourselves. We should be preparing for the eventuality that Saidi Arabia will cut us off. Drilling in ANWR, as well as in the Gulf of Mexico and the Coast of California are among the "sacrifices" that ust be made. We should also purchase oil from Russia, and virtually everyone else except for Saudi Arabia. This situation should be maintained until SA gets their socio-political affairs in order -- e.g they do everything within their power to end terrorism. Until then, it's not so much about THEM cutting the oil flow and pulling investment, but more about US cutting the oil flow and confiscating thier investments.

[river rat]

The House of Saud is the diseased whore that gave birth to and sustains radical/militant Islam...

The treacherous two faced lying bitch has earned our hatred, and deserves to feel the wrath of a brutal American vengence.
Semper Fi

[Arkinsaw]

I'm not sure the Saudis are going to be all that interested in selling low right now. But if they want to bail out at the bottom..........more power to them. Somebody will get some good buys.