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Why would it even be desirable to have less foreign ownership of US assets? Like what is the sound logic here? As an Italian I would love more foreign ownersh

Why would it even be desirable to have less foreign ownership of US assets? Like what is the sound logic here? As an Italian I would love more foreign ownership of Italian businesses, that would not only bring capital but more scrutiny.

Ekaros 2y ago
On one side it could mean that less money leaves. That is no dividends are paid to outside the country. All profits stay in. On other hand the economy overall and stock market especially have enormously increased due to outside investments. As injection of money in later one directly pushes valuations up. And the borrowing is only possible when someone loans money...
chrisco255 2y ago
If the foreign entities are not aligned with your country's values, what good is it? For example, Putin is arguably one of the wealthiest individuals in the world. Would you be bothered if he scooped up a controlling share in Italy's defense contractors or machining manufacturers?
yupitsme123 2y ago
The extreme opposite of zero foreign ownership would be full foreign ownerhship, ie. colonization. All your resources and wealth belong to a foreign nation. If we agree that that's a bad thing, then it stands to reason that there's a certain point where foreign ownership becomes a bad thing. I think China has done an excellent job of bringing in foreign investment while keeping those foreign investors from running amok.
robocat 2y ago
> I would love more foreign ownership of Italian businesses, that would not only bring capital Capital investments are like credit card spending, feels good for a while, but ultimately outwards-capital value should always exceed inwards-capital value (that's why somebody makes an investment). Sometimes everybody is better off (the ideal founder story with VC investment) but all too often the investment money is stolen or misused (but the debt remains for the country to repay). The 1MDB investments didn't help Malaysia: US investment bank Goldman Sachs helps 1MDB sell bonds worth $3.5bn... Goldman Sachs helps 1MDB raise a further $3bn in an additional bond sale, this time to cover “new strategic economic initiatives” between Malaysia and Abu Dhabi https://www.aljazeera.com/news/2020/7/28/timeline-how-malaysias-1mdb-financial-scandal-unfolded https://www.aljazeera.com/news/2020/7/28/timeline-how-malays...

Ekaros 2y ago

On one side it could mean that less money leaves. That is no dividends are paid to outside the country. All profits stay in. On other hand the economy overall and stock market especially have enormously increased due to outside investments. As injection of money in later one directly pushes valuations up. And the borrowing is only possible when someone loans money...

chrisco255 2y ago

If the foreign entities are not aligned with your country's values, what good is it? For example, Putin is arguably one of the wealthiest individuals in the world. Would you be bothered if he scooped up a controlling share in Italy's defense contractors or machining manufacturers?

yupitsme123 2y ago

The extreme opposite of zero foreign ownership would be full foreign ownerhship, ie. colonization. All your resources and wealth belong to a foreign nation. If we agree that that's a bad thing, then it stands to reason that there's a certain point where foreign ownership becomes a bad thing. I think China has done an excellent job of bringing in foreign investment while keeping those foreign investors from running amok.

robocat 2y ago

> I would love more foreign ownership of Italian businesses, that would not only bring capital Capital investments are like credit card spending, feels good for a while, but ultimately outwards-capital value should always exceed inwards-capital value (that's why somebody makes an investment). Sometimes everybody is better off (the ideal founder story with VC investment) but all too often the investment money is stolen or misused (but the debt remains for the country to repay). The 1MDB investments didn't help Malaysia: US investment bank Goldman Sachs helps 1MDB sell bonds worth $3.5bn... Goldman Sachs helps 1MDB raise a further $3bn in an additional bond sale, this time to cover “new strategic economic initiatives” between Malaysia and Abu Dhabi https://www.aljazeera.com/news/2020/7/28/timeline-how-malaysias-1mdb-financial-scandal-unfolded https://www.aljazeera.com/news/2020/7/28/timeline-how-malays...