A.I.M. Users Bulletin Board

[SFSecurity]

Hi Is7550,

BUT ! Sovereign Wealth Funds are restricted (Volcker Rule) from such short term hedging/trading

Toofuzzy is not suggesting short term hedging/trading but a multi year strategy, if I understand him correctly.

Besides, the Volker Rule does not apply to all exchanges. US exchanges are more transparent than others because of better oversight/regulation.

There is another element to consider, the size of the Saudi royal family. "The family is estimated to be composed of 15,000 members, but the majority of the power and wealth is possessed by a group of only about 2,000." (From Wikipedia) Given the numbers and that many can easily claim that they are not acting for the Sovereign Wealth Fund but only for themselves but are actually acting for the fund, just not visible to the outside, it is quite possible for them to do this. After all, think about the opaque nature of Saudi Arabia and think whether a US regulator could actually control their activities, especially since they are considered "strategic allies."

Look at the lack of real regulation of the "too big to fail" banks today. I really doubt that they'd sit on Saudi Arabia harder than the banks.

Best,

Allen