A powerful Abu Dhabi government fund is stepping in to rescue General Electric in return for becoming a major shareholder.
This breaking news is just another blow to the reeling U.S. economy, not to mention the U.S. citizenry.
As I noted on June 24, in “Capitalist Kumbaya”:
Mubadala, this Abu Dhabi government entity that you never heard of but that you’ll have a better and better idea about in the years to come, tore off a chunk of powerful U.S. investment firm Carlyle last year, paying $1.35 billion for a 7.5 percent share — a major holding.
Last November, Mubadala bought 8 percent of ailing chip maker AMD, which is perpetually losing its race with Intel but still powers a lot of your computers.
The New York Times has both of those stories, but as I write this item, it hasn’t reported this latest infusion of money into a U.S. company. It’s the “Arabs Oil Weapon,” as Bunny Wailer once sung, but the wailing you’re hearing is down on Wall Street, as U.S. big shots see their power erode.