March 28, 2007
Panelists estimated that foreign investors make up 7% of America’s entire capital stock; they predict this number will grow as America enters into an investment wave from Ireland, the Pacific Rim and Australia.
Economists such as Dr. Raphael Bostic of the USC Lusk Center also cautioned that events that are politic-, terrorist- or resource-driven may not only cause problems for foreign market investors, but for the US economy as well.
“We’ve become so heavily dependent on resources and energy sources like oil that if things happen in China and the Middle East they can then ripple through our economy,” he said. “This would cause a major loss of control.”