Neu Leonstein
11-01-2008, 02:37
http://www.economist.com/finance/displaystory.cfm?story_id=9230598
http://www.economist.com/displayStory.cfm?story_id=9556414&fsrc=RSS
Lots of countries are sitting on a lot of cash these days. Anyone who wants to maintain a currency peg needs much more foreign money to keep it going than, say, 30 years ago, because financial flows have become much larger and much quicker.
So many governments figure that they should be doing something worthwhile with the money while it's just sitting there, and have started "sovereign wealth funds". They basically act like hedge- or pension funds, except with less transparency and potentially political motives. Many are predicting that with the credit crunch now the wave of mergers and acquisitions, leveraged buy-outs and so on won't necessarily end because this government money comes in at the right time.
But what do you think about this? Is it a good thing? Would you support a sovereign wealth fund buying a big, well-known company in your country?
http://www.economist.com/displayStory.cfm?story_id=9556414&fsrc=RSS
Lots of countries are sitting on a lot of cash these days. Anyone who wants to maintain a currency peg needs much more foreign money to keep it going than, say, 30 years ago, because financial flows have become much larger and much quicker.
So many governments figure that they should be doing something worthwhile with the money while it's just sitting there, and have started "sovereign wealth funds". They basically act like hedge- or pension funds, except with less transparency and potentially political motives. Many are predicting that with the credit crunch now the wave of mergers and acquisitions, leveraged buy-outs and so on won't necessarily end because this government money comes in at the right time.
But what do you think about this? Is it a good thing? Would you support a sovereign wealth fund buying a big, well-known company in your country?