Post edited 6:13 am – November 19, 2009 by spreadtrader

http://seekingalpha.com/articl…..in-the-u-s

Interesting article. Note that the gap in chart #1 from the article has been widening over the course of the last decade. To me, this means that more American assets are being invested abroad than foreign assets being invested in America.

This raises a number of questions. Are nationalist policies necessary? I would doubt it. In fact, nationalism of U.S. assets would likely KILL whatever "economy" remains.

How about reverse nationalism on the issue of Americans investing abroad…….now there's an idea.

Are foreigners less able to invest in America than vice versa? Doubtful, considering the trend of the U.S. dollar.

Are Americans now more cosmopolitan in their investing practices? Possibly, but I doubt that it would cause a steady increase in the gap over a decade or more.

Is it caused by a combination of perceptions (or is it reality) that: a) the relative value of American assets is eroding; b) American assets are viewed as less secure; c) selected foreign assets are likely to experience more growth over time; and/or d) all of the above.

Arthur Laffer and his ilk would likely say that Americans are now more wealthy from all of the spending they have been doing over the last decade and are more able and willing to invest overseas (what a joke).

Whatever its cause, the net result appears to be a steady exodus of U.S. assets being re-plowed into investments overseas. As the trend continues (or accelerates) what does that say for the future of the U.S. as a world economic power????

Enjoy the weekend.

http://seekingalpha.com/articl…..es-platt-s