Progress . . . After A Fashion
By Pejman Yousefzadeh Posted in Economy | Selective Xenophobia — Comments (5) / Email this page » / Leave a comment »
So we have this story concerning Abu Dhabi's decision to invest in Citigroup in the wake of the latter's loss of half of its market value thanks to losses in the subprime mortgage sector. This is welcome news, as it constitutes a vote of confidence in Citigroup despite all the turmoil that is going through. And New York's senior Senator notes as much:
ADIA ``will bolster Citigroup's capital and competitiveness,'' U.S. Senator Charles E. Schumer said in a statement. . . .
Notice the ellipses? They denote that something comes after that excerpted phrase. Let's look at what that something might be:
. . . The New York Democrat was among the lawmakers who criticized the Bush administration's decision last year to approve DP World Ltd.'s $6.8 billion acquisition of London-based Peninsular & Oriental Steam Navigation Co., a deal that gave the Dubai state-owned port company control of six U.S. terminals.
Schumer was among those who said Dubai ownership would jeopardize U.S. national security, arguing that two terrorists involved in the Sept. 11, 2001, attacks were from the U.A.E.
Ah, yes. That.
Dare I think that Senator Schumer's change of heart has much to do with the fact that Citigroup, as a Wall Street mainstay, constitutes something of an institutional constituent for him? Xenophobia has a way of coming to a dead-bang halt when politicians need to keep votes and support from institutions that require foreign investment, eh?
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Progress . . . After A Fashion 5 Comments (0 topical, 5 editorial, 0 hidden) Post a comment »
is too busy and too dense to grasp the complexity of business finance, which makes him a dangerous politician.
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"Enlightened statesmen will not always be at the helm." -- James Madison
Neither one gives me a warm feeling.
And at 11% interest, this rescue comes with tentacles of future indebtedness.
Just ask Chuck Prince
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"Those who expect to reap the blessings of freedom must, like men, undergo the fatigue of supporting it."
-Thomas Paine: The American Crisis, No. 4, 1777
You are so right on to highlight the hypocrisy of Schumer's position on the citicorp investment. He was wrong on Dubai Ports, he's right on this one, but the incongruence of his positions raises a critical question: on how many other issues do the Democrats take positions based on parochial interests, convenience, or pure partisan politics? Where would the Dems be on Iraq for example if they weren't trying to appeal shamelessly and too often thoughtlessly to their base? Would they acknowledge that the surge has shown signs of success? Would they try to be part of the solution?
______________________________
"Those who expect to reap the blessings of freedom must, like men, undergo the fatigue of supporting it."
-Thomas Paine: The American Crisis, No. 4, 1777