Wednesday, December 19, 2007

True capitalism

I guess capitalism has full come circle with this latest piece of news.  Morgan Stanley has agreed to sell almost 10% of its stake to China.  Yes, you read it right.  Now, two of the most prestigious firms on Wall Street (Citi and Morgan), are owned either by a Communist country that faces many human rights violations or by a Islamic state with grandiose plans for its future. A few weeks ago Citibank agreed to sell almost close to 5% of its equity to the emirate of Abu Dhabi. It is also worthy mentioning at this point that the saudi aristocrat Prince Alwaleed bin Talal bin Abdul Aziz al Saud already owns about 3.6% of Citibank and is its largest single investor.

I have nothing against sovereign funds or foreign governments being big time investors in firms.  However, I feel it is ironical that the bastions of capitalism had to bow down in their time of need to entities that are often so despised by the common man in America - a communist country and a Islamic emirate.

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