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Petrodollars Snap Up Americana
Foreigners 'recycle' bucks with trophy buys like Chrysler Building
By Rob Quinn
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Posted Jul 10, 08 4:33 AM CDT
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(Newser)
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Foreign investors flush with dollars from the global commodities boom are using those greenbacks to buy flashy American properties, the New York Times reports. The government of Abu Dhabi bought a 75% stake in the Chrysler building Tuesday. Other recent "trophy" buys have included Donald Trump's Palm Beach mansion and some major works by American artists.
Congress is beginning to keep a closer eye on foreign investments, while still recognizing that they play a vital role in "recycling" dollars. "This is the natural outgrowth of us exporting a huge amount of dollars through high commodity prices to countries that have to reinvest it somewhere,” said an investment expert. “These countries have to extend beyond Treasury bills, and that means equities and real estate.”