November 28, 2007 (LPAC)--There is a tsunami of Middle Eastern oil money flooding into the world's markets, temporarily plugging holes wherever it goes, according to the Nov. 28 Globe and Mail. The region's state-run investment funds, and other types of firms from the Middle East, are on a buying spree, acquiring "ownership stakes in several high-profile companies in the United States and Europe," reports the article. One sovereign investment fund, the Abu Dhabi Investment Authority (ADIA), plans to invest $7.5 billion in Citigroup Inc, making it the largest single investor in the bank, and marking this bail-out as the largest on record for any sovereign wealth fund - and providing a 24-hour face lift for the U.S. markets.

According to analyst Edwin Truman of the Peterson Institute in Washington, the ADIA has already worked to soft-peddle these opaque, massive and growing funds to the U.S. government. "Obviously they managed the public relations so they got to key [politicians] before the deal was announced." ADIA controls about $875 billion in assets worldwide, within what is estimated to be a $2.5 trillion, and growing, sovereign wealth fund industry.

The loony and soon-to-be-replaced, director of the U.S. National Economic Council, and top Bush advisor, Allan Hubbard, reports on this as a sign of the soundness of the U.S. economy. "It reinforces the fact that America is a great place to invest," Hubbard told CNBC News. "People recognize we have the most successful, developed economy in the world, we have the fastest growth rate, we're the most secure, and that's why foreigners like to put their dollars here."

Sen. Charles Schumer (D-NY), of the finance and banking committee, who previously fought the ownership of U.S. ports by Middle Eastern acquires, is looking favorably on this investment saying that it will save jobs, bolster N.Y.'s status as a global financial center, and give Citigroup's image a needed boost.