Low Dollar = Foreign Buyers

Posted By: Dr. Frugal in Currency on 10/03/2007 at 10:36:03

According to the IHT, foreign investors are whetting their chops to snap up US companies.

The buyouts are sparking anxiety in the United States, though their impact is complex. Foreign owners typically use acquisitions as an entry into the U.S. market and thus may be more willing than American buyers to invest in their new holdings, some economists say. But the risk is that they might also be quicker to cut back or consolidate U.S. operations when times get tough.

"Quite naturally, foreign companies want to play in this market," said Alan Tonelson, a research fellow at the U.S. Business and Industry Council, a trade group for small and midsize manufacturers. "They want leading-edge technology, and the United States is still the technology leader. But when they buy these companies, they're acquiring control over the most dynamic pieces of the American economy, and they're acquiring control over America's future."

Interesting, isn't it· I'm not an investor in currency but I find the market fascinating. I find it riveting that a year ago the exact same purchases would have been off the table completely but now, despite there being no tangible change, these deals are happening--all because people will not pay as much to have a Washington in their pocket. Fascinating.


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