January 17, 2008
The Latest Invasion
(click for full size)
Isn’t it strange that The Economist would use a military analogy to illustrate the bailout of major U.S. financial institutions by foreign governments — particularly by countries in the Persian Gulf? (After China, isn’t that Kuwait coming in from the right?)
Also, and I’m not sure about this, but isn’t gold more a medium of intergovernmental exchange, whereas the foreign cash coming in is for stakes in U.S. financial institutions that have squandered it on real estate loans, and other kinds of speculation?
(Makes me think the gold analogy is supposed to make these bailout investments seem more official somehow.)
The invasion of the sovereign-wealth funds (The Economist)
(image: Jan 19th 2008 edition. economist.com)