Foreign Investors Buying Major U.S. Properties Using Our Addiction to Oil

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Guess who is negotiating to buying the famous Chrysler Building in New York??
Abu Dhabi is trying to buy the Chrysler Building, the latest Big Apple trophy being coveted by oil-rich sovereign wealth funds is the landmark Chrysler Building. Wake up America, our hard earned money purchases gasoline and oil products. The money goes back to the already rich oil countries and they come back here to buy the Chrysler Building and other American real estate.

The Abu Dhabi Investment Authority, one of the world’s largest sovereign wealth funds, bought into US banking giant Citigroup, paying 7.5 billion dollars in November. It also acquired a substantial interest in home builder Toll Brothers, according to the New York times. Also, Valter Mainetti, an Italian building investor, is interested in increasing his stake in the Flatiron Building in New York, built in 1902 as one of the first steel structures in the city, and surely would be a feather in Mainetti’s cap.

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Flatiron Building

The 50-story General Motors Building, constructed in 1968, and includes the Apple Store on Fifth Avenue, has already been sold — for a record-breaking 2.8 billion dollars — to US real estate firm Boston Properties, backed by investors from Dubai, Kuwait and Qatar.
The deal, concluded just recently, makes the GM Building the most expensive skyscraper in the United States, according to several reports.

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The seller, Macklowe Properties, had been mired in debt after acquiring seven major New York properties last year for seven billion dollars near the height of the real estate boom, before the subsequent real estate and credit crises.

Did you know that the richest city in the world is Abu Dhabi. America has done a great service to Abu Dhabi by buying their oil and making them really, really rich. They also sit on top of large oil deposits and will continue to rake in billions of dollars as long as the U. S. and the rest of the world buy the elixir of industry: oil!

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The ‘Dynamic Tower’, a slender, shifting skyscraper of rotating, energy-self-sufficient luxury apartments, was presented in project-form in New York by Italian architect David Fisher, before it goes up in Dubai.

Some Americans are saying that they are not worried about the rich oil countries buying U.S. properties, but are worried about the French. First they came for the iPods. Then the Europeans snatched up condos in Manhattan. Now they’re coming for the companies.

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A sign in East Village Wines informs customers that the wine and liquor store accepts payment in euros.

“I am not worried about rich Arabs; it’s the French who worry me.” This was the response from a businessman in Clovis, California, reacting to my comment that the U.S. government was concerned about the influence of foreign-owned sovereign wealth funds.

“Why are you worried about the French?”

“They just bought the largest company here,” “Life will now change for all of us—that company has been an important part of this community for years.” He was referring to Pelco, a Clovis-based manufacturer of video security systems that was recently acquired by Schneider Electric, a French company.

Why is this happening? Why all of a sudden are foreign countries starting to buy up the United States? The plummeting U.S. dollar has made the move across the Atlantic affordable for many European companies. And this may be a once-in-a-lifetime chance to relocate: American companies have rarely been so cheap. Five years ago, a German or Spanish company that coveted a U.S. competitor worth $500 million needed roughly 430 million Euros to purchase it. Today, it would take just 316 million Euros to buy a company worth half a billion dollars.

A Russian billionaire, ranked 59th on Forbe’s magazine billionaire list, purchased Donald Trump’s beach front Florida mansion for$100,000,000.00, although the new digs doesn’t mean the new Moscow’s owner’s bidding dosvidaniya to his Moscow home.

Pressure from oil prices spread…..

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Oil prices surged past $143 a barrel for the first time ever Monday, and the price for a gallon of gas hit an all-time high in the United States. Supply concerns and a fragile global economy continue to drive the price of oil to new highs, as well as continued tensions in the Middle East.

Traders who had bet on falling oil prices through short sales – in which they sell the commodity in the hope of buying it back later at a lower level – were forced to cover their positions, sending oil prices ­rocketing. Well, the traders and speculators are helping the world pay higher prices for oil.

“It’s still a bull market in oil,” said Tom Bentz, senior energy analyst at BNP Paribas.

Chemical and other companies struggle to contain costs as rain forests are being destroyed in Brazil to promote “Green Chemical Technology”

Chemical Companies that make hard goods using raw materials derived from oil, like tires, toiletries, plastic packaging and computer screens, are watching their costs skyrocket, and they find themselves forced into unpleasant choices: Should they raise prices, shift to less costly procedures, cut workers, or all three? Natural oils have been substituted for ingredients made from petroleum; for example, palm oil now goes into a variety of laundry soaps. But like rubber, the cost of palm oil and other natural commodities is rising. Using palm oil creates other problems in the Amazon basin.

Rain Forest Trees are being cut down at an alarming rate to clear land so more palm oil plants can be planted. Will the palm oil surfactants cost less than conventional surfactants? No, the new palm oil surfactants cost $.50-.80/lb. more than the oil based ethylene oxide surfactants. Remember this! These increased costs will be passed on to you, the consumer. Dow Chemical wants a premium price for their new EcoSurf surfactants. They may be chemically green, but cost wise, they are chemically ‘black’ and Dow still has to make these products with an oil based product for water solubility. Also, the product under OSHA classification is listed as a “Hazardous Chemical.” Is this what we call Green environmental progress?

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The world cannot calculate what man will do, and what will be the long range effects of man’s so called “green” actions on the environment? Green has become the catch all phrase, but as I look through the outer layers of the green movement, is the movement really green? Maybe or maybe not. the movement could be renamed: “the greed movement”.

Our Congress cannot and will not rescue America from its oil addiction and economic problems. America, what are you waiting for? The train has left the station and only people who have the guts and courage to develop the new green technologies will give us a chance to survive.

How many of our country’s problems could be solved – and solved quickly – if politicians were more worried about what is good for our country rather than how to protect their positions of power?

As usual, there’s a lot of talk and rhetoric from Congress, but there’s little action as America fades into the sunset and the oil rich nations and Europe are using our hard earned dollars to buy America’s real estate.

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2 Responses to Foreign Investors Buying Major U.S. Properties Using Our Addiction to Oil

  1. USA Lending and Realty October 2, 2009 at 12:35 pm #

    That is certainly alot of money. It seems like we are just over spending on gas.

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  1. It’s Official: Abu Dhabi Owns 90% of the Chrysler Building - July 14, 2008

    […] a previously post on CG, Foreign Investors Buying Major U.S. Properties, we reported about Abu Dhabi was looking at purchasing the Chrysler Building through a real estate […]

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