Replies to post #17669 on Zeev's Turnips Patch-No Politics (ZEEV)

[kailash]

Saudis pulling out some US investments

This article suggests the Saudis have already started "diversifying" their holdings out of the US, to the tune of 100 - 200 billion dollars.

http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=102...

These are sufficiently large amounts to affect both markets and exchange rates.

Kailash

[marginnayan]

Well the answer would depend on the level of real risk being frozen and confiscated. In this case, unlike stock, the risk can be real, since there are no hedging options available.