April 3, 2008
Sovereign Wealth Funds
When the sovereign wealth funds showed up to invest in United States financial institutions, my first response was great -- we enjoyed Japan's sucker money in the 1990s and now we will enjoy this sucker money as well. Well, how are they doing. The China Investment Corp has lost gobs on its $3 billion investment in Blackstone and the $5 billion it put in Morgan Stanley. The Kuwait Investment Authority has lost big on investments in Merrill Lynch, Citigroup. Bureaucrats care bureaucrats whatever country they come from; they are not astute investment managers. Our bureaucrats do no better but it does ease the mind some to have other country's bureaucrats in our markets.
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