Another side effect of our addiction to oil: The dollars we send to the Middle East are increasingly being sent back in exchange for our companies and real estate. The drawback? The Middle East owns our future cash flows and asset appreciation, not us.
The latest example? The Chrysler Building, which may be sold to the Abu Dhabi Investment Council for $800 million (NY Post):
Sources say the super-rich Abu Dhabi Investment Council is negotiating an $800 million deal for a 75 per cent stake in the Art Deco treasure that has defined the Midtown skyline since 1930….
The deal follows last month’s sale of the GM Building and three other Macklowe/Equity Portfolio properties for $3.95 billion to a group of investors including the wealth funds of Kuwait and Qatar and Boston Properties.
We’re all for the free flow of capital, and, if we’re going to sell off our assets, Abu Dhabi buyers should be just as welcome as, say, British or German buyers. But let there be no confusion about what is responsible for this particular round-trip trade. Our benighted energy policies of the past few decades.