the visible hand

it is the theory which decides what can be observed – einstein

Foreigners Buy Stakes in the U.S.

Posted by ecoshift on January 19, 2008

Foreigners Buy Stakes in the U.S. at a Record Pace – New York Times
By PETER S. GOODMAN and LOUISE STORY
Published: January 20, 2008

Last May, a Saudi Arabian conglomerate bought a Massachusetts plastics maker. In November, a French company established a new factory in Adrian, Mich., adding 189 automotive jobs to an area accustomed to layoffs. In December, a British company bought a New Jersey maker of cough syrup.

For much of the world, the United States is now on sale at discount prices. With credit tight, unemployment growing and worries mounting about a potential recession, American business and government leaders are courting foreign money to keep the economy growing. Foreign investors are buying aggressively, taking advantage of American duress and a weak dollar to snap up what many see as bargains, while making inroads to the world’s largest market.

Last year, foreign investors poured a record $414 billion into securing stakes in American companies, factories and other properties through private deals and purchases of publicly traded stock, according to Thomson Financial, a research firm. That was up 90 percent from the previous year and more than double the average for the last decade. It amounted to more than one-fourth of all announced deals for the year, Thomson said.

During the first two weeks of this year, foreign businesses agreed to invest another $22.6 billion for stakes in American companies — more than half the value of all announced deals. If a recession now unfolds and the dollar drops further, the pace could accelerate, economists say.

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2 Responses to “Foreigners Buy Stakes in the U.S.”

  1. Steven said

    Meet the new boss, same as the old boss.

  2. ecoshift said

    Perhaps you won’t get fooled again…

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