Had a lunch with a couple of the top analyists from Merrill Lynch yesterday and the talk turned to the UAE Terminal deal. Both of them were appalled at what has happened, are furious that the gutless Republicans just caved, and are seriously concerned about many investments. Both told me that they were quietly recommending that Boeing stock be sold because it is a virtual cinch that the UAE will cancel their jet orders and the other Arab countries will follow. Both are in the process of finding out how much Arab money is in our stocks and will bail at the first bad day there as well.
We cannot retaliate other than by freezing their assets, something not even Schumer would advocate---or maybe he would.
This could be really really bad.
3/12/2006
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2 comments:
Yea, just like when the arab street rose up against us...
They may try it. Time will tell. How are the Danish folks doing in the face of the arab cartoon boycott?
It will be bad. If a country cannot spend dollars, why should it hold them?
This was stupid on a grand scale. You will find many Arab governments dumping dollars. They could also stop writing contracts for oil in dollars.
The consequence would be a significant collapse in our currency.
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