The Saudis Own 10 Percent of America

by Ryan on January 19, 2008

The stock market has now dropped below a crucial 12,110 support point from March 2007, and the next support point lies around 10,040 which is another 17% down from where we are today. This could be very ugly.  An interesting stat is that the Saudi’s have invested over $900 billion (undoubtedly in USA oil cash), in American equities themselves. That’s right folks, the $900 billion the Saudi’s own in American equities is approaching 10% of America. We give them cash for oil, burn the oil, and in exchange, they literally use that cash to actually OWN our companies – 10% of all of them. That percentage will only grow over time, unless they pull out of the US market, a move which would cause the market to take the elevator, not the escalator down.