Scenario over the past decade in America:
- Americans buy McMansions and 11 MPG SUVs they can't afford.
- Americans borrow the difference from the likes of Citi and Merrill.
- Federal Reserve keeps rates ridiculously low to keep party going.
- Price of oil shoots up as value of dollar plummets.
- Americans take borrowed money and send it to Arabs and China
- Arabs & Chinese have hundreds of billions of $ sitting around
- Americans can't pay money back
- US banks like Citi and Merrill close to falling apart and need money ASAP
And then this happens...
Communist China and Arabs owning pieces of American banks. Hmmm I can't possibly see a problem with this scenario, can you?
NEW YORK (CNNMoney.com) -- Saudi billionaire-Prince Alwaleed bin Talal and a team of Chinese investors may ride to embattled Citigroup's rescue, according to a report from The Wall Street Journal.
Chinese investors, including China Development Bank, will reportedly contribute around $2 billion. It was not known how much would be invested by Prince Alwaleed, but the Journal calculated that his stake in the bank would likely remain under 5 percent, but that even a 1 percent stake would be a vote of confidence.
An earlier report said that Citigroup is trying to raise an additional $10 billion, most of which would come from overseas funds. In November, Alwaleed sold a 4.9 percent stake in Citigroup for $7.5 billion to the Abu Dhabi Investment Authority.