Wednesday, December 10, 2008

While waiting for President-Elect Obama to save America

It's an unusually balmy December day here in New Jersey, and Meredith Whitney of Oppenheimer, on CNBC, said this morning that 80% of the securitizations (money) that used to fund mortgages is not currently being used. Is this really true? Is it any wonder the housing market is not working? She also thinks house prices have 20%+ further to fall.

Also, she says that credit card advances have become a mainstream form of backup income to millions of Americans. Since credit card companies are now reining in such advance loans, it follows that incomes have become even more important to consumers across the country. When unemployment rises to projected future levels, where will money come from for millions of Americans?

CNBC also interviewed Abu Dhabi's "Taqa" Manager, Peter Barker-Homek. They are investing in (bailing out) some American infrastructure businesses in New Jersey that would take in-country funding, despite earlier American governmental intervention in the takeover of American ports by a Middle East company. Here's an article excerpt:

Sovereign Wealth Funds Briefing - Categorized | Alternative Investments, Investment, Market

Taqa to raise investment portfolio

Posted on 29 October 2008

From Business24-7.ae: The Abu Dhabi National Energy Company (Taqa), a semi-sovereign wealth fund controlled by the government, is pushing ahead with ambitious plans to lift its investment portfolio by nearly $39 billion (Dh143.24bn) within four years, its chief executive has said.

Peter Barker-Homek said the company is in control of a massive portfolio worth nearly $21bn and the next investment strategy would focus on the Middle East, India, Pakistan, North Africa, Europe and North America

http://www.opalesque.com/SWF_Briefing/?p=1297

The new American government can't obtain funding fast enough from the sound of it.

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