sovereign wealth funds

Europe has an enormous productive capacity, Greece included. Debt introduces a money distribution problem that becomes a flashpoint during periods of economic weakness because the inability of large debtors to pay imperils both the debtor,…

In China’s fight against the United States as an alleged currency manipulator, it is now trying to draw in the embattled euro zone. Agence France Press says that the Chinese are willing to contribute to the leveraged EFSF now set to be…

The press is reporting that China plans to set up new investment funds that will put some of its $3 trln in foreign reserves to work in energy and precious metals. The PBOC is also reportedly studying a proposal to set up some sort of…

The financial climate has changed radically from when Norway’s Oil Fund was established in 1990. Norway has built up its savings since then by selling enormous quantities of oil and gas, and employing many thousands of workers. By…

By Win Thin Brazil announced that it is allowing its Sovereign Wealth Fund (SWF) to trade currencies and currency derivatives (futures).  The SWF is managed by the Treasury, and so this gives the authorities another channel through…

Norway's government pension funds is the second largest sovereign wealth funds in the world with around $450 bln under management. Abu Dhabi is thought to have the largest sovereign wealth fund. The finance minister indicated that it has…

We have seen absoultely catastrophic losses at the world's Sovereign Wealth funds in the Middle East, Singapore, Norway, you name it. Add China to this list. China's State Administration of Foreign Exchange diversified its money out of…

Sovereign Wealth Funds (SWFs) are losing money hand over fist, which should leave one wondering whether their appetite for Western assets will continue to bolster those markets. Funds in Asia and the Middle East have been hit by a…

This post from January 2009 explains why banks do not increase lending capacity when uncertainty about the level of existing loan losses already on their balance sheet makes them worry about future loan losses. Credit wariness will be the…

In my book, losing a gargantuan $125 billion qualifies you as the dumb money. This appears to be what has happened at Abu Dhabi's leading Sovereign Wealth Fund. I had been warning all throughout 2008 that the Sovereign Wealth Funds were…