You Won't See This on the Evening News Reports

Just how bad is the US economy? If you read the newspapers, you'll probably be affected by some angst, but if you're a foreign investor the time is right to invest in America. It seems like those on the outside are more bullish on America than Americans.

Remember last year when there was a large political controversy over the fact that a port company owned by the Arab state of Dubai was going to invest in US ports?

The company, DP World Ltd. was poised to invest almost $7 billion in the deal, but a vociferous congress led by Senator Chuck Schumer (D-NY) criticized the Bush administration and said that America would lose control over our ports and that terrorists would have easy entry into the US if these Arab investors were involved. The outcry in America was huge and as a consequence the deal fell through.

Today, Senator Schumer gave an approving nod to a $7.5 billion dollar investment by the Arab country of Abu Dhabi in Citigroup Inc., the largest US bank based on assets. The irony of the situation is interesting. On the one hand an Arab nation is not allowed to invest in our ports, but it's perfectly alright to invest in our banks. Can anyone remember the most recent stories about how money is funneled to terrorists?

I'm sure there is a technical argument that would justify this Citigroup Bank investment over the port investment. On the other hand, could it have been political oneupmanship that would approve the one and not the other?

Citigroup Inc., led by former Clinton administration Secretary of the Treasury Robert Rubin needed the investment to overcome company weakness created by the current mortgage crisis. Apparently the Abu Dhabi Investment Authority (ADIA) is more bullish on America than Americans. Certainly they are investing to make a profit and the details of the deal would seem to insure that eventuality. As an aside, a Saudi Arabian Prince already owns $6 billion in Citigroup Inc.

Saudi Arabia continues to invest in America. It is making an investment of almost $12 billion in General Electric. Also, the Dubai World company that lost the port deal is now investing about $5 billion in MGM Mirage, the second-largest casino company. MGM Mirage has large real estate holdings as well.

China is also investing billions in the United States. Recently they acquired a portion of Bear Stearns Cos., the fifth-largest US securities firm.

It sure seems as if the gloom and doom forecasts about the US economy might not be as bad the forecasts.