Why is it so important to include the bail out of foreign investors that Bush will veto a bill that doesn’t have it? Consider the possibility that Europe/Asia are blackmailing us to bail out their investors.
The Gulf: Good times
Less concerned about the global market plunge are the Gulf states, which raked in a fortune from the rise in oil prices and created vast monetary reserves that allowed their governments to inject funds into their financial markets to stabilize them. This week, for example, the central bank of the United Arab Emirates (UAE) announced that it would transfer about $14 billion to the country’s banks and financial institutions as a loan taken in extraordinary conditions, so they can maintain liquidity at a desirable level. The central bank is considering lowering the liquidity level from the current rate of 14 percent, and it will also buy bonds from the banks.
As was the case throughout the Arab world, foreign investors yanked capital out of the Gulf states immediately after the markets began to crash. The Gulf banks, which are underwriting colossal building projects in those countries, would have faced a real disaster if clients had demanded their money. Thus, after investing $7.5 billion last November to save Citigroup, the Dubai Development and Investment Authority had to repeat the move - this time to save the country’s banks.
However, beyond the stability of the banks in the Gulf states and the inhabitants’ certain knowledge that the state will not allow the banks to collapse - mainly because most of them are owned by the ruling families and their cronies - people in the Gulf are starting to worry that the big bubble is liable to burst in their faces. Their concern is specifically for the real-estate bubble, which attracted big investors primarily to the UAE, and more recently to Qatar and Kuwait. With all the luxury towers, the neighborhoods of seaside villas, the office buildings designed by the world’s leading architects - local economists now think that the real-estate market has reached the saturation point and that a shift to different fields, notably industry, is desirable.
http://www.freerepublic.com/focus/f-chat/2092270/posts